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German government furious as ‘friendly countries’ charge ‘astronomical prices’ for gas

German government furious as ‘friendly countries’ charge ‘astronomical prices’ for gas

Germany’s energy situation is dire, and the Nord Stream pipeline explosions have only worsened its geopolitical and economic outlook

German Economy and Climate Minister Robert Habeck waits for the arrival of the Prime Minister of the Netherlands Mark Rutte at the foyer of the chancellery in Berlin, Germany, Tuesday, Oct. 4, 2022. (AP Photo/Markus Schreiber)

Germany has become extremely reliant on liquified natural gas from the United States to keep its industrial sector and economy afloat, and since the Nord Stream gas pipeline explosions, Germany has become even more dependent.

The pipeline explosion changes the entire geopolitical position of Germany, as it cut off any hope Germany had of restarting relations with Russia and regaining access to cheap gas supplies, which have served as the bedrock of the country’s industrial sector.

Given the circumstances, Germany is growing angry over the “sky-high” gas prices it has to pay from so-called “friendly countries.”

‘Our great-grandchildren will pay for this’ – Germany’s plan to borrow €200 billion in ‘shadow’ debt to pay for gas price cap criticized by federal audit office

Germany wants to borrow €200 billion to support gas prices using a budgetary trick

Federal Minister of Economy Robert Habeck has criticized the high cost of delivering liquid gas to Germany. He says that even “friendly countries” have sometimes demanded “astronomical prices,” Habeck told the Osnabrücker Zeitung. He said there is need for further discussion in order to bring prices down.

“I think such solidarity would also be good for curbing gas prices,” emphasized the Green politician with a view to the government in Washington.

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Winter is coming: German agency head warns of gas shortages, bankruptcies, and massive price hikes that will send ‘shockwaves throughout the country’

Winter is coming: German agency head warns of gas shortages, bankruptcies, and massive price hikes that will send ‘shockwaves throughout the country’

Inflation is already taking its toll on the German economy, but next winter is now being described in near apocalyptic terms by one prominent German agency head

A gas shortage and high prices will send “shockwaves through the country,” leading to landlords cutting the heat for tenants and widespread company bankruptcies, warned Klaus Müller, the head of Germany’s Federal Network Agency, which is the regulatory office for electricity, gas, telecommunications, postal services, and railway markets.

Müller paints a bleak picture about the crisis in an interview with German newspaper Rheinische Post, saying it will “send shockwaves throughout the country. Banks will ramp up their business with installment loans, and ailing companies will fall into insolvency.”

Müller’s office, which is a federal agency within the Federal Ministry for Economic Affairs and Climate Action, has a bird’s eye view of the economic situation in Germany and also special insight into how economic conditions will develop into the future.

Germany, gas supplies, Russia

As Germany prepares for crisis, one German energy expert is warning of a situation “where markets simply stop functioning”

Müller says he expects gas prices to continue to climb, resulting in increased inflation that goes far beyond energy. He also warns that there will be a dramatic lack of gas in the winter, which could lead to landlords turning down the heat to save on energy. In turn, Germans may have to grapple with colder apartments.

In a sign that the German government is operating under the assumption that a potential crisis could develop in winter, there are already talks about potentially lowering heating requirement for landlords.

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Olduvai IV: Courage
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Olduvai II: Exodus
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