The potential shutdown of Russia’s gas supply could lead to a recession and a “chaotic environment,” various German officials warn today.
While former US President Donald Trump has warned that Germany’s propensity for Russian gas will have extremely negative consequences in the long run, the country’s officials are now warning of “chaotic conditions” and a serious economic collapse if they lose access to resources. Moscow. .
The warnings came when Germany began to worry that when the Kremlin shut off gas on July 11 for annual gas pipeline maintenance between the two countries, Russian officials would use technical problems as an excuse to not restore supply. A move that reportedly shrunk the German economy by around 200 billion euros in six months.
According to various news outlets in Europe and Germany, the country’s authorities are currently grappling with a possible flare-up of a serious gas crisis that has left a major energy company facing current problems.
Due to the financial problems that such a gas loss will cause, POLITICS He reported that the German government is currently considering passing an emergency law that imposes a fiscal tax on all energy companies, whether or not they are involved in Russia’s gas imports, to share the cost of rising prices to keep the infrastructure afloat.
Such a measure could be an alternative to simply passing the higher energy cost to the end user; A move that some in the industry has warned will only lead to people being unable to pay their bills and collapsing local energy. Provider.
“This could lead to turmoil in the energy market that will definitely create problems for the entire energy industry and jeopardize security of supply in the first place,” he said. Mirror This was reported by Ingbert Liebing, CEO of the Municipal Corporations Association.
Germany warns of Lehman Brothers-style financial collapse if gas crisis continues https://t.co/mJkTs25tyv
– Breitbart London (@BreitbartLondon) 25 June 2022
The purely economic aspects of the crisis are far from the only question, with warnings that due to the safety mechanisms in domestic boilers it would be extremely difficult to compensate locally for a sudden gas cut in the country.
According to a separate Mirror A process that would take a long time due to the stress of such an event, with fuses that can only be reset by trained technicians, where a loss of supply would ignite fuses in hundreds of thousands of boilers nationwide, according to the report. traders in the industry.
“When the pressure in the gas network in the region fell below a certain minimum, fuses in hundreds of thousands of gas boilers suddenly exploded,” said Klaus Müller, head of the Federal Network Agency. broadcast as they say.
“If there is gas in the area again, they will need to be manually reactivated by trained specialists,” he continued. “Nobody wants a scenario like this because it will take a very long time to restore gas supply.”
As a result, Müller reportedly stressed that if the gas supply were threatened, it would be necessary to shut down German industry in the first place to prevent local supplies from falling below the insurance threshold.
However, this prioritization is likely to be extremely painful for the German economy, as Economy and Climate Minister Robert Habeck warned that the Kremlin has promised to cut such industries if it cuts Germany off its gas supply. – serious consequences for the average German.
“Companies will have to stop production, lay off workers, supply chains will collapse, people will be charged to pay their heating bills and people will be poor,” Habek said.
At NATO summit, Trump calls hypocritical Germany a “hostage of the Russians” https://t.co/tXeNwg8LMO
– Breitbart London (@BreitbartLondon) 11 July 2018
Source: Breitbart
