THE ENVY OF YOUR DECADES, BUT NO

LONGER ARE THE COUNTRY IS

OFFICIALLY IN RECESSION.

IT'S PEOPLE ARE LOSING

CONFIDENCE.

MUCH OF THE CURRENT TROUBLES

HAVE BEEN CAUSED BY THE WAR IN

UKRAINE, WITH GERMANY TURNING

HIS BACK ON RUSSIA, ITS FORMER

TRADING PARTNER.

OUR SPECIAL CORRESPONDENT

REPORTS FROM BERLIN.

>> THIS IS THE FACE OF THE NEW

FOUR IN GERMANY.

OUT OF EMBARRASSMENT, SHE DOES

NOT GIVE A SURNAME.

>> I NEVER, EVER THOUGHT IT

WOULD COME TO THIS.

I WORKED IN THIS COUNTRY AND

RAISED THREE CHILDREN.

I BOUGHT MY OWN HOUSE.

I WOULD'VE NEVER SEEN MYSELF IN

THIS SITUATION.

>> SHE IS A HAIRDRESSER.

FROM ONE OF THE PROVINCES IN

EASTERN UKRAINE OCCUPIED BY

RUSSIAN FORCES.

OVER A MILLION UKRAINIAN

REFUGEES HAVE TAKEN SHELTER IN

GERMANY SINCE THE WAR BEGAN.

>> FOOD IS VERY EXPENSIVE HERE.

I CAN BUY MEAT.

>> IN THIS COUNTRY OF 88 MILLION

, NEARLY 2 MILLION GERMANS ARE

RUN -- DEPENDED ON FOOD BANKS.

>> AT THE BEGINNING OF THIS YEAR

, WE HAD UP TO A HUNDRED 20

HOUSEHOLDS.

IT CAN BE ONE PERSON OR A FAMILY

WITH TWO ADULTS AND FOUR OR FIVE

CHILDREN AREA THE UKRAINE WAR

HAS VIRTUALLY DOUBLED THAT.

WE ARE NOW AT 200 HOUSEHOLDS.

>> I AM ASHAMED TO BE HERE.

THIS IS THE BOTTOM LAYER OF

SOCIETY.

WITHOUT -- BUT NOW THERE ARE

SOME THE MIDDLE-CLASS PEOPLE

HERE INCLUDING ME.

>> FOOD BANKS LIKE THIS ONE ARE

REAL INDICATION OF POVERTY AND

ONE OF THE RICHEST COUNTRIES IN

THE WORLD.

THERE ARE 14 MILLION PEOPLE

CONSIDERED TO BE IN POVERTY AREA

THAT IS ONE IN SIX OF THE

POPULATION.

>> GERMAN CITIZENS ARE IN A

STATE OF SHOCK OR THE

EXPECTATION WAS THAT AFTER THE

ENDEMIC WE WOULD RETURN TO

MAXIMUM EMPLOYMENT AND STRONG

WAGES.

HIGH COMPETITIVENESS WITH OTHER

ECONOMIES WORLDWIDE.

NOW PEOPLE REALIZE IT WILL NEVER

BE THAT WAY AGAIN.

>> HE IS ONE OF GERMANY'S MOST

RESPECTED ECONOMISTS.

HE SAYS THE NATIONS ECONOMY IS

NOW AT A TIPPING WEIGHT.

>> PEOPLE WORRIED ABOUT JOBS,

WHAT THEY ACHIEVED IN THE PAST.

THE FIRST SIGN OF THAT IS HIGH

IN RATION.

MOST PEOPLE ARE INCREASING --

EXPERIENCING A MASSIVE CUT IN

THEIR PURCHASING POWER.

>> I SHOP MORE CONSCIOUSLY.

I ALWAYS MAKE A PLAN AT THE

BEGINNING OF THE WEEK ABOUT WHAT

I'M GOING TO END AND THEN I GO

SHOPPING.

OTHERWISE THERE ARE IMPULSE

PURPOSES IN BETWEEN.

I AVOID THOSE NOW.

>> THIS IS A COSTLY REMINDER

THAT THE SOURCE OF THEIR

PROBLEMS ARE THE MONUMENTS

COMMEMORATING THE RED ARMY THAT

HELP THE NAZIS IN WORLD WAR II.

OUTSIDE THE RUSSIAN EMBASSY,

UKRAINIAN FOLK MUSIC PLAYS AS A

PROTEST AGAINST AN INVASION THAT

HAS INCREASED INFLATION AND

STRIPPED GERMANY OF ITS

DEFENSIVE CAPACITY.

POLITICIANS INSIST THAT GERMANY

IS RESOLUTE IN ITS SUPPORT FOR

UKRAINE.

BUT SOME BEG TO DIFFER.

>> THEY ARE SAYING THAT THINGS

ARE GETTING MORE EXPENSIVE.

THAT IS THE MAIN WAY.

THEY WOULD GLADLY GIVE UKRAINE

TO THE RUSSIANS.

THEY CERTAINLY DO NOT WANT TO

GIVE MORE MONEY THAN THEY ARE

ALREADY GIVING.

>> HE HAS LIVED IN BERLIN FOR

DECADES.

HE HAS WRITTEN NEARLY A THOUSAND

BOOKS IN GERMAN.

>> THEY WANT A CERTAIN AMOUNT OF

PROSPERITY.

IF YOU THREATEN TO TAKE IT AWAY,

THAT IS WHEN YOU TURN AWAY THE

PEOPLE.

MIGRANTS CAME IN AND THEY WERE

REALLY AFRAID OF LOSING

PROSPERITY.

THAT IS WHEN ALL THE MORALS WENT

OUT THE WINDOW.

>> TODAY THE BRANDENBURG GATE IS

SYMBOLIC OF THE COUNTRY'S

CURRENT DIVISIONS.

>> GERMANS ARE RATHER FRAYED

BECAUSE REMEMBERING THE SECOND

WORLD WAR STILL VERY PRESENT IN

THE COLLECTIVE MEMORY.

>> PROPAGANDA PICTURES WITH

WHICH DETERMINES HOPE TO PROVE

THEMSELVES UNBEATABLE.

>> EVERYONE HAD A GRANDFATHER

WHO WAS IN THE WAR.

>> WE HAVE NOW STABBED INTO THE

TERRITORY OF OUR ALLY.

WE ARE FAR FROM ACHIEVING THE

OBJECT, THE DESTRUCTION OF THE

RED ARMY.

>> THIS IS SOMETHING GERMANS ARE

AWARE OF.

THEY ARE REALLY OF WAY THAT THIS

COULD HAPPEN AGAIN.

>> OF COURSE THE SOVIETS OF LAW

-- LOST TANKS, HUNDREDS OF THEM.

>> HE IS ONE OF GERMANY'S

LEADING DEFENSE ANALYST.

HE SAYS THE NATION IS ALARMED AT

HOW SUPPORT FOR UKRAINE HAS

ERODED CAPABILITIES.

>> OFFICIALLY AND BENEFICIALLY,

THE GERMAN FORCES ARE NOT IN

POSITION TO FIGHT A REAL WAR AT

THE MOMENT.

>> HOW LONG COULD GERMANY DEFEND

ITSELF IF THERE WAS A HOT OR?

>> -- WAR?

>> GERMANY WOULD HAVE A REAL

PROBLEM WITH HAVING THAT

AMMUNITION.

CERTAIN TYPES OF AMMUNITION.

THIS WOULD MEAN THAT GERMANY

WOULD HAVE TO RELY ON ALLIES.

>> DESPITE DEFENSE, GERMANY'S

MOST PRESSING CONCERN IS ENERGY.

THE NUCLEAR POWER STATIONS ARE

BEING SHUT DOWN.

>> IN THE LONG-TERM, NUCLEAR

POWER IS NOT THE TECHNOLOGY OF

WHICH ARE.

BUT IT WOULD'VE BEEN GOOD TO

RELY ON IT NOW.

>> GERMANY IS NOW IMPORTING

HIGHER-PRICED NATURAL GAS.

THE GREEN ENERGY RESOURCES ARE

NOT SUFFICIENT TO FILL THE GAP.

>> WHAT WE NEED TO DO IS BE

COURAGEOUS AND INNOVATIVE.

WE NEED TO SAVE ENERGY AND WE

NEED TO INVEST IN RENEWABLES.

>> COMPANIES MIGHT NOT SURVIVE

THE NEXT FIVE YEARS.

>> DESPITE BOOSTS IN CARBON

FOOTPRINT, THE CHEMICAL GIANT

WILL RELOCATE PART OF ITS

PRODUCTION TO CHINA.

>> WE ARE BUILDING OFFSHORE WIND

FARM, THE BIGGEST IN THE WORLD

AREA >> GERMAN PROSPERITY HAS

ROOTED IN THE POWER OF ITS

MANUFACTURING.

BUT THAT IS NO LONGER THE CASE.

>> CAR COMPANIES AND OTHER

COMPANIES ARE LOSING OUT IN

GLOBAL COMPETITION.

THE ECONOMIC FUTURE OF GERMANY

MIGHT LOOK VERY DIFFICULT.

BUT GERMANY HAS A LOT OF

STRENGTH.

THIS IS ESSENTIAL FOR GERMANY TO

MANAGE BIG TRANSITIONS.

♪

>> WHILE GERMANY IS NOT AS BADLY

OFF AS OTHER NATIONS IN THE

WORLD, IT HAS LOST SOME ECONOMIC

POWER.

♪