German public gloom more concerning than rise in inflation, Siemens Energy chair says

Joe Kaeser, chair of Siemens Energy, is more concerned by gloomy public sentiment in Germany than he is by the recent rise in inflation.

The former chief executive of German conglomerate Siemens said base effects and the monthly and quarterly price readings meant he was not overly focused on the annual headline inflation figure.

“I am more concerned about the mood which we have in Germany. People are downbeat, everybody’s asking what’s going to be next, what’s in [it] for me. That’s what we need to explain to people, so they are more upbeat again,” Kaeser told CNBC at the World Economic Forum.

“I always say, look folks, the night is always darkest before dawn. Look at the opportunities.”

Kaeser said the German government needed to present a roadmap on energy, jobs and economic growth, and move past current industry disputes. Meanwhile, he said, the country needs to be a role model on emissions reduction and invent products and services for the future that are economically feasible.

“We need to go from defense to offense again,” he added.

On the major issues hanging over Siemens Energy’s lossmaking wind power unit, Kaeser said: “The skies will clear on wind when we are honest that we have an energy triangle which we cannot escape.”

This is about the balance between sustainability, affordability and security of supply, he said.

“If you want to be very sustainable, you have to do that at a cost. If you want to be affordable, you have to have a bridging technology such as gas-fired turbines which can also use hydrogen. So we have to have more honesty about the cost of sustainability.”