Many German households are threatened with poverty due to inflation and high energy prices, the German Savings Banks and Giro Association has warned at a press conference.
According to a recent study by the savings banks, around 60 percent of private households in Germany are already having to spend their entire income on their monthly expenses.
Households with a net income of less than 3,600 euros currently have no money left at the end of the month.
Making ends meets is becoming a struggle for most Germans.
And to make up for gaps, many households are having to fall back on savings, as well as on government transfers.
The cost of living crisis is affecting income groups from 2,500 to 3,600 euros, who have generally been independent and not required state support.
Helmut Schleweis, President of the German Savings Banks and Giro Association, warned it was necessary for the state to limit energy prices in order to cushion the consequences for companies and private households. It is the only way to prevent a wave of bankruptcies in medium-sized companies.
The cost of living crisis and the resulting decline in purchasing power is expected to shrink business in the gastronomy, retail and service sectors.