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Reduced Russian gas supplies: Habeck fears an economic downturn due to energy shortages

2022-07-06T17:17:16.342Z

The steep rise in energy prices could lead to a recession in Germany, warns Robert Habeck - even a credit crunch is possible. At the same time, the Economics Minister sees scope for further sanctions.



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Federal Minister of Economics Habeck (Greens): “Let’s reload if you don’t mind”

Photo:

Sven Hoppe / dpa

Federal Economics Minister Robert Habeck believes a recession is possible due to the energy shortage in the wake of the war in Ukraine.

The German politician said in Munich that there was a risk of the German economy slipping.

"Social peace in Germany is being severely challenged and strained." Initially there is a risk of a loss of purchasing power, but ultimately a credit crunch could also threaten the country's economic strength.

The current situation is very urgent, added Habeck.

Russia has recently significantly reduced its gas supplies.

If these tear off completely, experts fear massive problems for the industry, because then many production processes would no longer work.

That is why the federal government is tightening the laws for energy security.

In order to ensure security of supply, for example, important companies could be provided with capital against the will of some shareholders.

"It's pretty close to expropriation what's happening."

At the same time, Habeck spoke out in favor of further economic punitive measures against Russia.

"I don't want to hide the fact that my ministry is still thinking about further sanctions," said the Green politician on Wednesday evening in Munich.

"We're far from finished."

The sanctions are already highly effective and are hitting Russia hard.

But more can be done, especially in the area of ​​software maintenance, for example.

But the European partners would have to agree.

"We'll reload if you don't mind."

Sol/Reuters

Source: spiegel

All business articles on 2022-07-06

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