Germany takes pride in its fiscal conservatism but it would be perverse to preserve in this approach when loosening the purse strings might help to shorten a war. Prudence without purpose can look a lot like cupidity.
And it is fair enough for the world to ask Germany to step up to the plate now when so frequently in recent history Berlin has been indirectly dictating how foreign capitals manage their financial affairs.
Southern European countries were forced to adopt policies of extreme austerity by the European troika during the eurozone sovereign debt crisis in the wake of Lehman Brothers’ collapse, in large part because Germany and other northern European countries repeatedly ruled out debt relief.
Germany shut down three nuclear power plants at the beginning of January and is planning to close its last three by the end of the year., making it more dependent on Russian gas.Credit:dpa
Between 2009 and 2013, the Greek economy contracted by 21 per cent and unemployment soared to 27 per cent. At the time, Berlin claimed these measures were for the best and designed to prevent the eurozone from imploding.
But if that was an acceptable price for Athens to pay, how can Berlin baulk at a 2.2 per cent hit to German GDP and the loss of 400,000 jobs as a result of turning off Russian gas taps? If southern European countries had to pay the price for their fiscal irresponsibility, how can Germany refuse to accept the consequences of its geopolitical naivety?
Germany’s reticence is all the more galling as it steadfastly chooses to ignore the most obvious solution to its predicament. In a decision that was ridiculous even before Vladimir Putin invaded Ukraine and now frankly beggars belief, Germany shut down three nuclear power plants at the beginning of January (just 103 days ago) and is planning to close its last three by the end of the year.
The EU’s largest economy is fast losing moral authority.
If Germany goes through with this, it’s going to need even more Russian gas. But if it halts the self-defeating policy and reopens shuttered plants, it will need less. Again, there have been a litany of excuses for why this is not possible.
The Bundestag says turning the country’s nuclear reactors back on will require a change in the law (which is kind of what governments are for). It’s also worried about being able to source enough fuel, spare parts and personnel.
Yes, these are genuine obstacles – but no, they’re not insurmountable. Surely Germany could borrow resources and know-how from other members of the EU, not least France, which have nuclear industries?
The pandemic has provided ample evidence that impressive feats are possible if you put your shoulder to the wheel. Before the pandemic, no mRNA vaccine had ever been licenced for use in humans and Pfizer was producing 200 million doses of various jabs each year. In 2021, the pharma company churned out three billion doses of its COVID mRNA vaccine.
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It is ironic that the green part of Germany’s traffic light coalition is putting the brakes on the most obvious way out of the country’s political predicament. Germany’s anti-nuclear movement is long-standing and entrenched. But politicians are paid to navigate the least bad route. At the moment Berlin is giving the strong impression that it is more anti-nuclear than anti-war.
Putin clearly calculated that European reliance on his natural resources would allow him to get away with invading Ukraine. It has fallen to Germany to prove him wrong. If Scholz reopens Germany’s nuclear power stations, turns off the Russian gas taps and heads to Kyiv to tell Zelensky the good news, he’ll receive a hero’s welcome.
Germany’s addiction to Russian gas could make it a global pariah
Source: Philippines Alive
