Berlin’s massive energy subsidies may not be enough to cope with economic effects of the Ukraine crisis, Reuters says
Germany spending $500 billion to ‘keep the lights on’ – media
A worker stands outside an electricity substation last month on the outskirts of Berlin.
Germany has reportedly allocated nearly $500 billion to shore up its energy supplies and “keep the lights on” since the Russia-Ukraine conflict began last February, but the spending binge might not be enough to weather the crisis.
The estimated total cost reflects the “cumulative scale” of energy bailouts and other schemes that Berlin has employed amid surging oil and natural gas prices and the loss of imports from Russia, Reuters reported on Thursday.
The outlet called the various subsidies an “energy bazooka” – equating to $5,400 per resident in Germany, 12% of GDP and an estimated $1.6 billion per day since the conflict in Eastern Europe began – adding that still more spending may be needed.
“How severe the crisis will be and how long it will last greatly depends on how the energy crisis will develop,” Michael Gromling, head of macroeconomic research at the German Economic Institute, told Reuters.
The national economy as a whole is facing a huge loss of wealth.”
The economic effects of the conflict stem largely from anti-Russia sanctions imposed by the US, Germany and other NATO members. Despite Western efforts to punish and isolate Moscow, Russian government revenue from oil and gas exports has more than doubled in a year to 10 trillion rubles, about $160 billion, in 2022’s first 11 months. Over the same period, rising energy earnings helped push the government budget surplus to 557 billion rubles.
Germany resorts to record borrowingREAD MORE: Germany resorts to record borrowing
However, as Reuters noted, Europe’s biggest economy now finds itself “at the mercy” of the weather. “Energy rationing is a risk in the event of a long cold spell this winter, Germany’s first in half a century without Russian gas,” the outlet pointed out.
Stefan Kooths, vice president at Germany’s Kiel Institute for the World Economy, said uncertain energy supplies have pushed the country’s economy to a “very critical phase.” He added, “Where does the German economy stand? If we look at price inflation, it has a high fever.”
Reuters based its calculation of Germany’s spending on bailout packages for energy companies, LNG import infrastructure and funding to help utilities and traders buy gas and coal. “Despite these efforts, there is little certainty over how the country can replace Russia,” the outlet said.
https://www.rt.com/news/568329-germany-spends-500bln-on-energy-crisis/
Mohsen Rezaee, a member of the Expediency Discernment Council, has said preconditions include reparations and security guarantees
For the ongoing conflict between Iran and the US to conclude, the latter must withdraw its military forces from the Persian Gulf, according to a member of the advisory board of Iran’s supreme leader.
Mohsen Rezaee, a retired major general and former commander of the Islamic Revolutionary Guard Corps (IRGC), added that Tehran would also seek full restitution for the damage done and ironclad security guarantees from Washington.
In an interview with Iran’s SNN TV broadcaster published on Saturday, the member of the Expediency Discernment Council said that the “presence of the US in the Persian Gulf has been the main cause of insecurity over the past 50 years.”
“The end of the war is also in our hands,” Rezaee claimed, naming the “US withdrawal from the Persian Gulf” among the key prerequisites. Additionally, Iran expects to receive reparations from the ...
The spokesman for the Khatam al-Anbiya Central Headquarters has accused the United States and Israel of deploying a rebranded copy of Iran’s Shahed-136 drone, designated “Lucas,” to carry out attacks on civilian infrastructure in regional countries as part of a deliberate false-flag operation aimed at framing the Islamic Republic.
In an official statement released today, the spokesman explained that after suffering military setbacks on the battlefield and failing to build political coalitions against Iran, the enemy has resorted to deception.
The statement specifically warned that the objective of these operations is to “create doubt and accuse the Islamic Republic of Iran” while sowing discord between Tehran and its neighbors, thereby undermining the legitimacy of Iran’s defensive actions.
The spokesman pointed to a series of “suspicious attacks” in recent days on facilities in friendly neighboring countries, including Turkey, Kuwait, and Iraq, which Western media outlets and hostile ...
The Islamic Revolution Guards Corps (IRGC) has announced the execution of the 51st wave of Operation True Promise 4, launching missile strikes against US military installations across the region in retaliation for ongoing American-Israeli aggression against the country.
The IRGC announced the latest wave was carried out using a combination of liquid-fuel and solid-fuel missiles against US terrorist army forces at the Al Kharj Air Base in Saudi Arabia.
According to the IRGC statement, Al Kharj base served as the "origin of aggressions against the Islamic homeland," functioning as the staging ground for US F-35 and F-16 fighter jets involved in attacks on Iran.
The base also houses fuel supply aircraft and serves as the main hub for American AWACS surveillance planes.
Concurrently, the spokesman for the Khatam al-Anbiya Central Headquarters confirmed that the fiftieth wave of the operation struck multiple US terrorist army bases.
They include the Al Dhafra Air Base and Fujairah in the UAE, Jufair in ...
