German industries could face collapse due to cuts in Russian gas supplies, the country’s top trade unionist warned ahead of talks with Chancellor Olaf Scholz starting on Monday.
“Due to gas constraints, entire industries are at risk of collapsing for good: aluminum, glass, the chemical industry,” said Yasmin Fahimi, head of the German Trade Union Confederation (DGB), in an interview with the Bild am Sonntag newspaper. “Such a collapse would have huge consequences for the entire economy and jobs in Germany.”
The energy crisis is already driving inflation to record levels, he said. Fahimi calls for a price cap on household energy. Rising costs for Co2 emissions mean a further burden on households and businesses, Fahimi added. The crisis could lead to social and labor unrest, he said.
Economy Minister Robert Habeck said Saturday that the government is working on ways to deal with rising costs faced by both utilities and their customers, without giving details. He had earlier warned that the squeeze on Russian gas supplies risked creating deeper unrest, likening the situation to Lehman Brothers’ role in triggering the 2008 financial crisis.
Russia has cut shipments through the Nord Stream pipeline by 60%, and the pipeline is scheduled to be completely shut down this month for maintenance. Germany has expressed doubts that Nord Stream will continue supplying after this.
Source: Capital
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
