Economic Research Institute
Germany extremely insecure when it comes to energy
When it comes to energy supply, Germany could become a “high quality island”.
As is well known, Germany is dependent on Russian gas supplies. But how does the economy compare to other industrialized countries in this respect? Not good, the essence of the Mannheim ZEW.
Munich. According to a study, Germany’s energy supply is particularly weak in an international comparison – both with rising prices and with supply bottlenecks.
In an analysis published on Tuesday, the Mannheim-based economic research institute ZEW came to the conclusion that Germany, together with the Netherlands, would become a “high-quality island” in terms of electricity supply. This makes Germany, along with Italy, particularly susceptible to delivery failures.
According to the ZEW, both factors threaten competitiveness and make Germany unattractive for industrial sectors with high energy consumption. The client was the Foundation for Family Businesses. The ZEW analyzed the energy supply of 21 industrialized countries from the point of view of how badly the national economies would be damaged by price increases and supply bottlenecks. The economists compared 16 EU countries as well as the USA, Japan, Canada, Great Britain and Switzerland.
Accordingly, the security of supply of the three large non-European economies is in no way endangered by the Ukraine war. The previous price increase was “extremely moderate or non-existent,” the newspaper said.
In Europe, most countries are less prone to energy shortages than Germany, which is particularly dependent on Russian gas.
Striking differences within Europe
“The price effects of the energy crisis for electricity and gas are largely limited to European locations,” explains study author Friedrich Heinemann. There are striking differences within Europe. “Germany, together with the Netherlands, is quickly becoming a high-price island.” According to an analysis by ZEW, electricity prices in France or Switzerland, for example, have not risen significantly.
The metal processing, chemical and paper sectors in particular will suffer from gas rationing. According to the ZEW, significant losses in other sectors cannot be ruled out due to a lack of preliminary products.
“Foreign competitors are not a problem,” said board member Rainer Kirchdorfer. “And competitors in Europe may change faster if they consume less.” The Foundation for Family Businesses and the ZEW jointly appealed to the federal government: “Economic and energy policy in Germany must find an answer to the question of how Germany can remain competitive for energy-intensive companies.”
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