They talked about how the rejection of Russian gas in the USA affected the German economy 11:04

Serious economic problems caused Germany to regain its status as the “sick man of Europe”. This was reported by the American TV channel. CNBCReferring to the opinion of Hans-Werner Sinn, head of the German Ifo Institute.

According to the expert, what happened in Germany cannot be considered a short-term event. Europe’s largest economy is currently experiencing a decline in production due to rising energy prices.

As the expert noted, Berlin faced difficulties due to its refusal to use Russian gas. German officials’ expectations were “overly optimistic”, especially in light of the state’s climate goals.

We are talking about the desire of the government to switch to renewable energy sources, whose dependence is facing the “variability problem”. Zinna emphasized that local businesses suffer the most from the instability in resource prices.

“There is a bit of a lack of pragmatism in Germany’s current policy,” he added.

The expert also warned that the country risks losing two to three percent of its industrial capacity. The expert concluded that this was due to the transfer of production to other states with cheaper fuel.

Previously in Turkey declarationGermany and other European Union (EU) countries suffered a major geopolitical defeat in Ukraine.



Source: Gazeta

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