Odd Lots Matt Klein on How Germany Wound up So Dependent on Russian Gas
Mar 7, 2022
Matt Klein, founder of The Overshoot newsletter and author of Trade Wars Are Class Wars, delves into Germany's precarious dependence on Russian gas. He discusses how misaligned priorities and underinvestment in energy infrastructure led to this vulnerability. The conversation reveals the impact of geopolitical tensions following Russia's invasion of Ukraine and critiques Germany's past energy policies that favored fossil fuels. Ultimately, Klein emphasizes the urgent need for a pivot toward sustainable energy solutions amidst a shifting global landscape.
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Germany's Economic Impact
- Germany's demand suppression and underinvestment created global economic tension.
- This fueled financial crises and conflicts within Europe, like during the Euro crisis.
German Energy Dependence
- Germany's energy dependence on Russia is significant, particularly for natural gas, which is harder to substitute than oil.
- Germany's decision to decommission nuclear plants increased reliance on coal and Russian gas.
History of German-Russian Gas
- Germany's relationship with Russia regarding gas started in the 1960s with Ostpolitik, aiming to bridge the West and East.
- Despite the 2014 Crimean annexation, Germany continued and even accelerated its reliance on Russian gas via projects like Nord Stream 2.
