The funds for Germany’s energy plan were meant to expand the use of renewable energy and make the country less reliant on Russia, Reuters reported. Last week, a large German utility company asked for state support as it prepares for a bailout due to a lack of Russian supplies, according to the WSJ.
Russia’s natural gas cuts are occurring as households are suffering from CO2 price increases and a rise in inflation, Business Insider reported. Germany’s economy relies on Russia for 35% of its natural gas supply.
Last month Russia cut natural gas to Germany through the Nord Stream 1 pipeline by 60%, Business Insider stated.
The pipeline is projected to shut down for maintenance for ten days in July, leading to fears of exacerbating the situation, Germany’s Vice-Chancellor Robert Habeck said in an Associated Press article. After the maintenance, however, Habeck fears Russia will not continue natural gas deliveries.
Germany joins an increasing number of European countries on the brink of economic collapse, with the Group 7 summit announcing their plan to resort to fossil fuels. Liquefied natural gas is being used across Europe as an attempt to ease high prices and shortages.
Politico notes:
Speaking on CBS’ “Face the Nation,” German chancellor Olaf Scholz told host Margaret Brennan that the brutal invasion launched in February by Russian President Vladimir Putin had shaken the world out of its complacency.
“I think too many in the world were hoping that we are living in a different world that is different to the experiences of the last century and the centuries before,” Scholz said, adding that a part of that gentler world order was that “we have had an agreement that there should be no attempt to change territory, to change borders, to invade the neighbor.”
