After pumping billions of dollars into green energy, Germany faces economic catastrophe, including potential collapse if Russia cuts off gas supplies.
On July 5, Germany announced its plan to rewrite 1970s legislation to send taxpayer money to energy suppliers in an effort to prepare for a possible recession, The Wall Street Journal mentioned. The collapse comes after Germany revealed its plan to spend $220 billion to convert all of its energy needs to renewable sources, according to Reuters. mentioned. (Related: Russia reverses gas flow through major pipeline serving Europe)
Reuters reported that the money for Germany’s energy plan was aimed at expanding the use of renewable energy and making the country less dependent on Russia. Last week, a large German utility company requested government support as it prepares for a rescue plan due to lack of Russian supplies, according to the WSJ.
Natural gas cuts are happening in Russia as households suffer from rising carbon dioxide prices and rising inflation, Business Insider reports. The German economy depends on Russia for 35% of its natural gas supplies.
Russia last month cut natural gas to Germany via its Nord Stream 1 pipeline by 60%, Business Insider advertiser.
The pipeline is expected to be shut down for maintenance for ten days in July, leading to fears that the situation could worsen, German Vice Chancellor Robert Habeck told The Associated Press. Article – commodity. After maintenance, Habek fears that Russia will not continue to deliver natural gas.
Germany joins a growing number of European countries on the brink of economic collapse, as the Group of Seven summit announced its plan to turn to fossil fuels. LNG is being used across Europe in an attempt to alleviate high prices and shortages.
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