Germany’s gas action plan pulls its punches

Germany is facing a sudden acceleration of its gas crisis

Germany is facing a sudden acceleration of its gas crisis. A 60% drop in Russian supplies since early June threatens to plunge Europe’s biggest economy into severe economic shock. But Berlin’s confusing response to Moscow’s latest move, its hesitations on energy policy, and its attempts to delay the impact of higher energy prices on the economy risk making matters worse, Qazet.az reports.

Whatever its disputed causes, Gazprom’s (GAZP.MM) sudden slowdown of its contractual deliveries has forced Berlin to declare an emergency. Economy Minister Robert Habeck, a leader of the Green Party, has ordered increased usage of highly polluting coal in power stations. Meanwhile, liberal Finance Minister Christian Lindner has suggested delaying the planned closure this year of the country’s three remaining nuclear reactors in order to help absorb the shock. He was promptly contradicted by advisers of Chancellor Olaf Scholz.