With the Nord Stream 1 pipeline closed for maintenance, with the possibility that President Putin will not allow it to reopen at the end of the scheduled 10 days downtime in retaliation for the EU's continued support or Ukraine in their conflict with Russia, Germany is facing an unprecedented crisis that could erase the prosperity Germans have grown accustomed to, warned Rainer Dulger, head of the Confederation of German Employers’ Associations.
“We are facing the biggest crisis the country has ever had. We have to be honest and say: First of all, we will lose the prosperity that we have had for years,” Dulger told the Süddeutsche Zeitung regarding the consequences of a gas shortage to Germany's business and domesticv premises.
While many people in politics, business and the media are urging more government intervention to help prop up the German economy, Dulger argues that, the fewerthere are state interventions , the better. He says that when it comes to the economy, private businesses always do better than the government.
However, he does believe some measures need to be implemented to provide support for people being thrust into poverty because of rising prices and business closures or short time working.
“More net earnings from the gross amount must now arrive into every citizen’s account,” he claimed, stressing the importance of not reducing the net income of the citizens in a veiled appeal for tax cuts, and policiesensuring the fair redistribution of profits generated during the crisis.
Dulger is not the only one warning of a crisis in Germany, a crisis which is already in train. Economy Minister Robert Habeck too has warned of a “catastrophic winter” should Russia threat to cut off the gas supply be carried out.
According to him, Germany will face a “crucial test that we haven’t faced for a long time.”
Other experts predicti mass bankruptcies, inflation, and energy rationing that will send “shockwaves” through the German economy as a result of a deepening of the energy crisis which was triggered by the failure of idiotic 'net zero' pledges and green virtue signalling and is being exacerbated by knock on effects of the Ukraine conflict and the EU response.
The Bavarian Business Association (VBW) warned that as many as 5.6 million jobs across Germany could be lost in the case of a gas supply stoppage from Russia.
According to the association’s analysts, the loss of gas imports from Russia gas could also reduce the country’s economic output by 12.7 percent, with immediate abandonment of the raw material hitting the glass, iron, and steel industries particularly hard; losses in these sectors would be almost 50 percent.
Dulger sees the current situation as being due to the lack of capacity to be self-sufficient in energy production, as a result of abandoning both coal and nuclear power to appease the country's powerful green movement. For too long, Germany had disregarded something that former German Chancellor Helmut Schmidt warned about in the 1970s.
When deliveries of gas to Russia began at the time, Schmidt said: “We can do it, but we must not depend on Russian gas for more than 30 percent.”