If the West wants to weaken the aggressor Russia, it can only do so by lowering energy prices, not by raising them.
(Photo: dpa)
At this point in March I demanded that the federal government act as decisively as is necessary in view of the Russian war of aggression and the resulting economic war.
Unfortunately, six months later we have to state that the German government still does not fully realize how dramatic the challenge we are facing is and how drastic the measures must be if we want to win the economic war and maintain our prosperity.
If the West wants to weaken the aggressor Russia, it can only do so by lowering energy prices, not by raising them. This assumes that everything is done to increase the global energy supply. Germany must make a contribution to this.
In this environment, anyone who reduces their own energy production (nuclear phase-out), holds back existing capacities (coal power) and does not use existing resources (gas deposits) harms the world’s poorest, with whom we compete in our global energy procurement.
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In addition, anyone who exposes their own industry to a historic energy price shock without taking any supportive measures is promoting the trend towards de-industrialization that has been going on for several years, not least because of the high energy prices even before the war. It causes us to be losers.
Daniel Stelter is the founder of the discussion forum beyond the obvious, which specializes in strategy and macroeconomics, as well as a management consultant and author. Every Sunday his podcast goes online at www.think-bto.com.
(Photo: Robert Recker/ Berlin)
Increase Germany’s gas reserves
It was high time that the federal government introduced a gas price cap for the economy that would slow down the price increase and stretch it out over time. Models for this are on the table.
Depending on the development, 30 to 60 billion euros per year may be necessary for a “gas economic rescue fund”. That sounds like a lot, but compared to the damage it prevents, it’s negligible. However, the cap only makes sense if there is a prospect of soon lower energy prices due to an expansion in supply.
Financing is not a problem. We only have to raise the gas reserves in Germany. With a surcharge on the production costs, we can pay off the accumulated debt over the 30 years that our inventories suffice.
That would not only be cheaper, but also more environmentally friendly than gas, which is shipped halfway around the world, not to mention the problem of human rights violations in key supplier countries.
>> Read here: All current developments on the energy crisis in the news blog
Then we would have the necessary bridging technology from our own country on the way to the renewable future. Refusing fracking is just another example of the prevailing attitude in Germany: Anything but in my neighborhood. No nuclear power! But from France. No money! But from Poland. No gas! But from Qatar. We should be ashamed of it and finally act as it should.
More: At most 15 percent more expensive and almost no taxes – this is how other countries slow down energy prices.