ECONOMY - GERMANY - THE ENERGETIC CRISIS

the german crisis is especially due to high energy costs, which are ruining companies and industries that produce a lot of exports. is the german government reacting to this crisis? if so, how?

True, Germany is facing a difficult energy crisis, with skyrocketing costs for gas and electricity that are putting a strain on companies, especially energy-intensive and export-producing ones.

However, it is not correct to say that this is the only cause of the crisis. Several issues contribute to this complex scenario:

External factors:

Dependence on Russian gas: Germany has historically relied on Russian gas to meet a large part of its energy needs. The invasion of Ukraine and subsequent Western sanctions have led to a drastic reduction in Russian supplies, causing prices to soar.

Increased global demand: The post-pandemic recovery has boosted energy demand globally, further driving up prices in international markets.

Domestic factors:

Energy transition: Germany has embarked on an ambitious programme to move away from fossil fuels in favour of renewables. However, this process takes time and huge investments, and in the short term has created a dependency on traditional energy sources.

Lack of infrastructure: Germany does not have an adequate network of pipelines and LNG terminals to quickly diversify its energy supply sources.

How is the German government reacting?

Faced with the energetic crisis, the German government has taken several measures:

Business support: billions of euros have been allocated to help companies cope with skyrocketing energy costs. These include direct subsidies, tax reductions and subsidised credit measures.

Energy saving plan: A national campaign has been launched to encourage citizens and businesses to reduce their energy consumption. This includes measures such as lowering heating limits in buildings, using more efficient household appliances and adopting more conscious consumption habits.

Accelerating the energy transition: The events of recent months have made the need to reduce dependence on fossil fuels even more evident. The German government has therefore reaffirmed its commitment to the expansion of renewables and energy efficiency, with the goal of achieving climate neutrality by 2045.

Diversification of supply sources: Germany is working to diversify its energy supply sources, increasing gas imports from other countries and investing in LNG projects. Discussions are also underway for the possible extension of existing nuclear power plants.

Will the measures be successful?

The effectiveness of the measures taken by the German government is still to be assessed. The approaching winter will be a major test and Germany will face significant challenges in ensuring the country's energy security and containing the economic impact of the crisis.

In addition to the above-mentioned measures, the debate in Germany is heated on how best to deal with the crisis. Some critical voices complain that the government is not doing enough to protect companies and that the energy transition is happening too fast. Others emphasise the urgency of accelerating decarbonisation and reducing dependence on fossil fuels, even at the cost of short-term economic pain.

The energy crisis is a major challenge for Germany, but it is also an opportunity to accelerate the transition to a more sustainable and secure energy future. How the situation evolves will depend on the political choices that will be made in the coming months and the country's ability to implement the necessary measures with the necessary determination