Scholz demolished in 200 days what Germany built in 30 years: magazine
A Russian magazine says that in May 2022, Germany recorded a trade deficit for the first time in 30 years and is entering a structural crisis.
The Russian magazine Expert said that German Chancellor Olaf Scholz demolished in 200 days what his predecessors Gerhard Schroeder and Angela Merkel had built over 30 years, adding that the German economy collapsed like a house of cards.
The magazine highlighted that in the fall, shocking statistics will be released regarding the decline in Germany's GDP, industrial production, the real income of the population, and the spread of inflation.
Expert also considered that the country is falling into a structural crisis.
The magazine pointed out that the volume of trade between Russia and Germany in the past 20 years is consistent with the concept of partnership, and trade between the two countries grew until the 2014 US-backed coup when the development of the partnership slowed down after the declaration of the secession of Crimea from Ukraine.
Imports from Russia to Germany set high records
The Russian magazine highlighted a decline in exports from Germany to Russia down to the level it was 20 years ago, while imports from Russia to Germany set high records. The result was a record deficit in the trade balance with Russia, which is a double blow to the German economy, said the magazine.
It explained that in May 2022, Germany recorded a trade deficit for the first time in 30 years. Germany, and with it all of Europe, is entering a structural crisis. The problems of the German economy, and indeed the entire European economy, are reflected by the exchange rate of the euro, which fell against the dollar to its lowest level in 20 years.
Expert indicated that the basis of the German trade balance deficit, along with France, Italy, and other countries is energy sources, whose prices have risen sharply, especially natural gas, whose price has reached $1900 per thousand cubic meters.
The magazine considered that the military bravado of European politicians was useless because no one is seriously discussing the seventh package of sanctions against Russia, but rather the main political thought focuses on the issue of how to deal with losses, pointing out that the panic in the German cabinet is noticeable.
Regarding the gas crisis in Germany, the magazine said that discussions began at the expert level about the launch of the long-awaited Nord Stream 2 pipeline despite US sanctions, stressing that the gas crisis in Europe, which has just begun, has shown that the European economy is entirely in the hands of Russia.
German government strategy to replace Russian gas failed
In the same context, the German newspaper Bild considered that the German government’s strategy to replace Russian gas has failed and that the government will not be able to provide the required gas in the coming winter, explaining that the problem was that the market did not contain the gas tankers needed to transport natural gas.
On Sunday, German Chancellor Olaf Scholz stressed that the issue of providing Germany with energy resources will remain at the top of the German government's agenda for a long time to come.
It is noteworthy that Germany raised the alert level under its emergency plan to secure gas supplies, bringing the country a step closer to rationing, after deliveries from Moscow via the Nord Stream 1 gas pipeline decreased by 60%.