Germany in Trouble6 Sep 2023 16:06
Germany’s reliance on cheap Russian gas is causing severe ramifications for its economy.
With another winter approaching and energy prices climbing anew, the cracks are once more beginning to show. In Germany, there is growing concern over the damage the conflict is doing to the country’s once well oiled economic model, partly dependent as it has been on the supply of cheap Russian energy.
According to Politico’s most recent poll of polls, support for Alternative für Deutschland (AfD), parts of which favour an immediate settlement with Putin, has surged all the way from 10pc since the start of the war to 21pc today.
To cap the damage from sanctions, Germany’s largest export market for cars, China, has pretty much cornered battery supply chains and threatens to leapfrog Germany into next generation electric vehicles.
Already the European auto market is subject to fierce Chinese competition.
EU plans to phase out the internal combustion engine by 2035 are viewed with growing alarm in the industrial heartlands of Bavaria and the Rhine, prompting BMW’s chief executive, Oliver Zipse, to warn this week that volume car manufacturing in Europe could all but disappear.