German Financial Hole is Deeper than Expected
Instead of 0.4% growth, Germany will likely end the year with a 0.4% contraction, with independent projections predicting even worse figures.
Instead of 0.4% growth, Germany will likely end the year with a 0.4% contraction, with independent projections predicting even worse figures.
Habeck’s warning comes as the volume of Russian gas traveling to Germany and Eastern Europe is set to be drastically reduced when transit agreements between Ukraine and the Russian Federation expire in 2024.
The dismissal of one of Germany’s most influential green policymakers has triggered discord in Berlin’s ruling coalition, as public opinion turns against the once-popular Green Party.
Germany’s leading green policy advisor Dr. Peter Graichen evoked the fury of the press when he stated that he ‘overlooked’ the fact that he proposed his best man as head of the German energy agency.
The coalition crisis shows that the green policies, which are already causing a populist upset in much of Europe, are now creating instability in one of the EU’s most powerful governments.
Economy Minister Robert Habeck noted that China remains Germany’s second-largest export partner and largest source for imports—a fact which would do much to dissuade the nation from doing an all-out U-turn.
The minister’s criticism of Washington’s price gouging comes as Germany and much of Europe stare into an economic abyss.
Does Germany anticipate an insolvency wave this fall? The minister of economy says “No,” adding that companies might “stop production for some time.”
Germany’s gas levy was meant to help large energy providers in financial distress, but after learning that successful companies who continue to make billions of profits applied for support as well, the levy will be reworked.
The levy comes just days after Energy Minister Robert Habeck announced his plan for reducing gas consumption by 20%. He also wants to allow public buildings to be heated at a maximum of 19 degrees.