Germany’s greening economy is falling ever deeper into crisis
“The data speaks for itself: incoming orders and industrial production are in decline. In November last year, industrial production recorded a shocking year-on-year decline of 4.8%, according to Blackout News. “The last time this level was reached was in July 2020, when the coronavirus crisis was at its peak. A worrying sign for the German economy.”
Green policies causing energy shortages and price rises
The truth behind the country’s demise has much more to do with the government’s green policies, which are driving the prices of energy up and industries out of the country. All of this is making life for average citizens far more miserable.”One of the factors exacerbating this recession is the high energy prices. They are causing companies to relocate their business abroad or even temporarily shut down their production facilities,” Blackout News reports further.Future remains bleak2024 for Germany looks just as bleak with many economists doubting the country will see any growth at all.
Blackout News also cites “structural problems”, “high levels of bureaucracy, high taxes and rising energy costs.”
“These factors are causing companies to look for alternatives abroad”.
Denial of reality
Other media, like The Guardian, echo the German government and deny the nutty energy policies are driving inflation and high prices. It’s always something else.
Unfortunately, like in the past, Germany will likely first have to collapse completely before returning to its economic and political senses. And, as we all know, when this happens, things tend to get really nasty for all of Europe.
The POTUS is working hard to have the USA follow a similar path.
We live in interesting times.
OT
https://twitter.com/Niall_Boylan/status/1746828149403316528
Electric buses being charged using diesel generators in a depot.
It’s burning Hydrotreated Vegetable Oil (HVO) that makes it “green”
https://m.independent.ie/irish-news/transport-bosses-forced-to-explain-after-video-appeared-to-show-electric-bus-connected-to-diesel-generator/a113559265.html
Overlooked is an important bottleneck. In Dublin the electricity infrastructure was never designed to handle this demand and consequently it is expensive and complex to get it installed. Many service stations in Dublin have requested to install rapid chargers and been refused on account of the physical bottleneck.
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What will happen when Germany sinks into a depression and millions leave the country as economic refugees? Will those who stay behind finally get off the green train wreck?
[…] jour après jour. Comme le fait observer Pierre Gosselin dans un de ses récents articles ( https://notrickszone.com/2024/01/16/sickest-economy-in-europe-green-policies-corrode-business-german… ) chaque fois que l’économie allemande a touché le fond au cours de la première moitié du […]
The Germans are obedient people, a trait which if carried to extremes can become disastrous.
If one wants to be taken seriously, one has to be serious.
I live in Sweden, where we are hit by the consequences of the US/EUs economic war, that is the boomerang effect of idiotic mesures.
Why idiotic?
Because you cannot boycott your main and CHEAPEST supplier, besides just next door, and expect to not be hit by reality.
What happened?
1 – Polen shut down the Yamal-Europe tube, the Baltic states and Finland shut their connections to the Russian gas ducts.
2 – Ukraine shut a third of the delivery capacity of the transit system on its territory.
3 – “Someone” blew up the gas pipes on the bottom of the Baltic sea.
4 – The EU stopped the import of Russian and Whiterussian wood-chips and pellets.
5 – The EU stopped the import of Russian coal.
6 – Finland shut down the grid exchange with Russia (by refusing to pay in rubles).
7 – The Baltic countries reduced the grid-exchange capacity with the Soviet-time BRELL-grid.
8 – The US/EU sabotaged the direct import of Russian oil and oil products (hypocritical import of the same via, for example, India “only” sort of dubbles the total cost).
9 – More stupid warmongering that i forgot.
What does it mean?
Cheap pipe gas was replaced by scarce and very expensive LNG (depriving poor countries like Bangladesh of their contracted deliveries because paying the fines was cheaper than abstaining from the fat profits from the European bonanza).
That in turn led to both rising coal prices and electricity prices.
Sweden exported (and still exports) a lot of electricity, mainly to the Baltics, Finland and Polen, and imported hugely inflated electricity prices courtesy of the EUs pricing rules. (We are also hit by high Brittish prices via the new England-Norway cable and the same pricing rules.)
Germany being the country most dependent on the destroyed gas lines and having the strongest chemical industrial base was consequently worse hit, but the crazy electricity prices have hit all those dependent on day-pricing instead of long term contracts, everywhere in Western Europe.
Electricity producers in Norway and Sweden (sun, water and wind are dead cheap; nuclear has fixed costs) made a killing, and still do, as the energy sector in the Nordics uses very little coal, gas or oil for electricity generation or heating. Heat became a bit more expensive in Sweden because buyers from the continent tried to replace their lost wood chips from Russia and drained the Scandinavian market. (Not every district heating plant can run on peat, and none can run on peat only.)
So, weather you like it or not it was not die Wende that killed Germany’s industry (and therefore Europe’s), it was the USA/EUs suicidal economic war on Russia, with good help of a once in 500 years drought and a huge nuclear problems in France (yesterday only 51 of installed 61 GW capacity was running, which is still a lot better than during last winter) and Sweden.
Not that “die Wende” lacks snags, just that one needs to be honest while describing reality.
Wars are always very expensive but when stupid and ignorant planners call the shots they can become an economic catastrophe for already indebted countries.
There are we now.
Adding more boycotts and costly long range missiles on the battlefield won’t bring cheap energy (and markets) back to Germany.