German Economy Minister Robert Habeck said on Wednesday that the current situation in Germany could result in a recession, as reported by Reuters.

"The credit crunch could threaten the country's economic power," Habeck added. "What we're now doing is pretty close to an expropriation of companies."

On Tuesday, the German government proposed an emergency law that would allow the government to acquire shares of energy firms if they need to be bailed out.

Market reaction

The shared currency remains under constant bearish pressure on Wednesday and the EUR/USD pair was last seen losing 0.9% on the day at 1.0175.