The Green New Deal in Europe is quickly turning into a House of Horrors
One excellent site with all the late latest energy crisis developments in Germany and Europe is Blackout News here. Here are some of the more notable headlines of the past week:
Europe’s largest aluminum smelter, Aluminum Dunkerque Industries France, will cut production by 22% due to rising electricity prices, thus putting the industry’s existence at risk and increasing Europe’s dependency on foreign suppliers.
German municipal utilities, who supply gas and power to their communities, are running into liquidity problems as suppliers of electricity and gas demand large sums as security guarantees before deliveries. Around 200 of the 900 German municipal utilities are affected.
The municipal utilities also “have to reckon with payment defaults by their customers on an unprecedented scale. Consumers have to cope with price increases of over 50% in some cases, which many will not be able to cope with”
Eight to 15% of consumers are expected to not to be able to pay.
It’s a serious danger signal because if they get into trouble, an economic crisis is usually not far away.
Hostile business environment in Germany
The German economy is reeling from exploding energy costs as insolvencies escalate and even once robust companies collapse. A number of industrial companies have imposed production stops or drastically reduced production – because of the skyrocketing energy costs. BDI industry association president Siegfried Russwurm warns that the spiraling energy prices are driving companies away.
In the latest BDI survey, 90% of all companies are severely challenged by the sharp rise in energy and raw material prices. In February 2022, the figure was just 23%.
Extreme power shortages in France
France normally generates a good 70 percent of its electricity from nuclear power plants but its power supply is massively at risk as 24 of the 56 reactors are off the grid due to repairs and maintenance. The country is now planning rolling blackouts should there be corresponding supply problems.
French utility RTE reports “it is clear that the country will not be able to produce enough electricity during the winter months unless consumers drastically reduce their power consumption.” As a result, the utility expects there may be rolling blackouts during the winter.
If this keeps up, Europe might quickly turn into a continent of starving and freezing beggars. Watch for Europe to be looking at a new Enabling Act.
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