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Significance
Berlin believes that supply via the pipeline will decline significantly or end completely after the maintenance work. Consumer confidence in July reached an historic low, suggesting that a technical recession is likely regardless of what happens with Nord Stream 1.
Impacts
A complete closure of Nord Stream 1 is unlikely as Russia cannot sell the gas to other buyers.
Household compliance over calls to reduce energy consumption is far from guaranteed.
Mounting economic pressures could weaken the incentive to bolster substantially defence investment over the coming years.
Germany’s economic vulnerability to geopolitical crises risks undermining the its industrial attractiveness for international investors.
Keywords:
Germany,
EUR,
Russia,
economy,
industry,
politics,
consumer,
energy,
fiscal,
gas,
government,
climate,
environment,
nuclear energy,
party,
chemical,
corporate,
opposition,
prices,
welfare,
Fossil fuels,
Chemicals,
Automobiles
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2022
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