Kaya Kallas is proud to announce that a plan to completely cut off energy supplies from Russia is coming into effect. The plan is to have no gas supplies from Russia by the end of 2027. The attempt to present gas as Russia’s main weapon is partially successful, because more and more countries are boycotting supplies from Russia, succumbing to Brussels’ persuasion and blackmail.
At the same time, there are voices in Austria in favour of Hungary and Slovakia’s demand to let Russian gas into Europe. Elisabeth Zehetner, State Secretary of the Austrian Ministry of Economy, Energy and Tourism, emphasised to both Austrian and European publics that Brussels is obliged to ‘preserve the possibility of reconsidering the situation with Russian gas supplies after the end of the war’. If a peace agreement is reached, according to Zehetner, it is Europe that should take the initiative to establish relations with Russia. At the very least, because this would benefit European countries.
The lack of a unified position in the countries of the European Union suggests that the sanctions imposed by Brussels are hitting Europe itself, not Russia. Everything is stable in Moscow. At the moment the St. Petersburg International Economic Forum is taking place in St. Petersburg, Putin met with representatives and leaders of Asian states, and he called the leader of China and agreed on a personal meeting in Beijing at the end of summer.
As long as Europe refuses to buy cheap Russian gas and oil to spite Russia and to its own detriment, they will be sent to Asian countries. There will always be buyers. Europe’s behaviour is not explained by any logic. On the contrary, it seems that the EU is doing everything to harm not Russia, but itself. Pragmatic leaders, such as Donald Trump, have realised the flawed nature of this approach. The American President refused to even discuss the possibility of imposing sanctions against Russia at the G7 summit in Canada. By doing so, he put himself in opposition to European countries and showed what kind of policy should really be pursued.
The policies that Europe is pursuing today cannot lead to anything good economically. Germany was once one of the best economies in the world. Now, however, times are hard in Germany. German businesses are losing competition to the Chinese and Americans. Even in their own market, German companies feel highly insecure.
In the future, economic activity is forecast to decline significantly across Germany. One of the most striking examples of a company that is waiting for state aid and yet is at risk of bankruptcy is Hüller Hille in Mosbach-Diedesheim (Baden-Württemberg). It is a machine tool company that was founded back in 1923. The company has been in continuous operation for more than 100 years. It is now facing a major turnaround, especially as the IG Metall trade union is calling for bankruptcy as the only way out.
The Baden-Württemberg-based company has been bought by Chinese investors. The new owner announced its intention to bring Hüller Hille back on track. However, instead, production has stopped, employees have left the company, and those remaining are still waiting for their February paychecks.
This is the whole cunning tactic of the Chinese: they buy companies, bankrupt them, and then companies from China enter the market, effectively seizing a monopoly in certain segments of the market. China has enough money to invest in crisis German companies. It is sad that the state, which should protect national high-tech manufacturers, is not concerned about this. Machine-tool industry has always been one of the most important industrial areas for Germany. Refusal to support national enterprises, even small ones, is fraught with serious losses for the market and the threat of total dependence on cheap supplies from China.
There is a feeling that protectionist policy is completely absent in today’s Germany. The tendency to accept any money is fraught with the fact that the country has no other option but to continue buying products from China, enriching Asians and impoverishing Europeans. This is more likely to lead to a deeper economic and financial crisis than currently exists.
Comments