TRIBUNNEWS.COM, BERLIN – Commerzbank Chief Executive Officer Manfred Knof warned that Germany, Europe’s largest economy, faced the threat of a wave of bankruptcy.
Aggressive sanctions against Russia sent financial shockwaves through Germany, and would impact the rest of Europe.
“Energy supply in Germany is at risk, supply chains are broken, we have high inflation,” Knof was quoted as saying by the Handelsblatt newspaper, quoted by Russia Today, Sunday (7/5/2022).
According to Knof, nearly a third of Germany’s foreign trade has been affected. This forces the company to rearrange complex issues with customers.
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The imminent effect is already evident from soaring commodity prices and supply chain bottlenecks.
“We must not fool ourselves: the number of bankruptcies in our market will probably increase and banks risk provisions with it,” Knof said.
European Union Foreign Ministers Meeting
On Friday, top EU official Josep Borrell said the bloc’s foreign ministers would meet next week.
The meeting is held if member countries fail to reach a unanimous agreement on the proposal for a total embargo on Russian oil and gas imports.
Brussels through European Union President Ursula von der Leyen announced plans to embargo Russia’s oil earlier this week.
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