Germany: A Difficult Energy Future is Coming
Germany has a very difficult winter to come. The energy crisis will definitely affect its economy in many aspects. Will Germany and its economy recover?
Germany is now considered to be in the heart of the energy crisis that the whole European Union is facing.
The country has a plan to protect the citizens from the full impact of the ongoing crisis in the energy sector and the constantly growing prices of gas, by spending € 200 billion. But despite that possible plan, it is said that people with lower incomes, will still be in a problematic and hard situation.
This crisis is more likely to lead to a recession, both in Germany, and in other countries within the EU, due to the fact that they used to rely on the more reasonable gas prices that Russia was providing, before the Russian-Ukrainian war. In addition to that, a percentage of inflation is also to be expected in the upcoming months. The overall situation, is causing rapid concern and signifies uncertainty to people’s everyday lives, because of those drastic changes.
The German Government has tried to mitigate the crisis with a plethora of relief packages, and by consulting the citizens to save energy, and reduce their everyday consumption, so that the total consumption of the country can be diminished.
What is happening as far as the nuclear energy is concerned? Is it going to be stopped? No. It is not. On the contrary, it is said that the exit of the nuclear energy, is being postponed for the time being, while the crisis is currently very critical, and it will probably gradually get worse in the next few months.
The Government will be trying to become more autonomous, and not to be depended on the Russian liquefied natural gas anymore. In order to achieve that, they are working on making new deals with other possible future suppliers.
How will the general economy in Germany be affected? It is very much possible, that the German economy will be pushed into a recession by the time the new year is around. While the inflation is getting constantly higher and higher, people’s consumption will be greatly reduced. And as a result, the outcome of that, will be a gradual recession.
In conclusion, it is crystal clear that Germany has a very difficult winter to come. The energy crisis will definitely affect its economy in many aspects, and not only that, but also the citizens and their everyday lives will be affected too.
But will Germany and its economy recover? And if so, how?