Germany, facilitator of the war in Ukraine?  - Economic policy

Germany, facilitator of the war in Ukraine? – Economic policy

In a war, it is often said that the first victim is the truth.

Let’s face it today: despite historic economic sanctions, Russia has won its first victory in the battle for the ruble, which has returned to its pre-war level. As for Macron, he has just admitted that Putin does not intend to end this war anytime soon. This is why the question posed in the premiere of the New York Times by Nobel laureate in economics Paul Krugman remains more relevant than ever: if the war continues, is it not the indirect responsibility of the Germans?

Everyone knows that the only restriction likely to shorten this war is the end of imports of Russian gas by Europeans. It is Russia’s last source of income and revenue from this resource even increased during this war. However, everyone also knows that Germany is the country most reluctant to turn off the energy tap because this country is 55% dependent on Russian gas. As Paul Krugman points out, the German government seems to listen only to German industrialists who are basically telling it that if Russian gas were to be cut, it would be a disaster for the German economy as a whole. Paul Krugman challenges this view. Other studies point in the same direction and seem to say that if depriving Russian gas will be difficult, it will also be surmountable with some effort. But nothing works, the German government considers that it cannot ask its citizens and its industrialists to do without Russian gas, the effort would be too strong. This is where the argument of the Nobel Prize in economics Paul Krugman is the strongest. I explain his thinking: Germany has always given moral lessons to other countries. When the public debt crisis erupted in 2012, Germany wanted to punish Greece for tampering with its public accounts. She insisted on introducing austerity despite the sacrifices it imposed on Greek citizens. The idea was to teach a lesson: Greek growth fell by 21% and unemployment rose to 27%, so these Greeks had to be punished, the Germans said. Now, what does Paul Krugman say? That Germany has no memory. She has been told for years and years that she has become too dependent on Russian gas. But the Germans haven’t listened for years and the result is here today.

For Paul Krugman, unlike Greece, Germany has received many more warnings to stop its mismanagement. But if morality plays a role in Germany’s economic policy, we discover that this morality is only valid for small countries and not for itself.

Paul Krugman concludes that Germany is the weak link in the democratic world’s response to Russia’s aggression.

Let’s face it today: despite historic economic sanctions, Russia has won its first victory in the battle for the ruble, which has returned to its pre-war level. As for Macron, he has just admitted that Putin does not intend to end this war anytime soon. This is why the question posed in the premiere of the New York Times by Nobel laureate in economics Paul Krugman remains more relevant than ever: if the war continues, is it not the indirect responsibility of the Germans? Everyone knows that the only restriction likely to shorten this war is the end of imports of Russian gas by Europeans. It is Russia’s last source of income and revenue from this resource even increased during this war. However, everyone also knows that Germany is the country most reluctant to turn off the energy tap because this country is 55% dependent on Russian gas. As Paul Krugman points out, the German government seems to listen only to German industrialists who are basically telling it that if Russian gas were to be cut, it would be a disaster for the German economy as a whole. Paul Krugman challenges this view. Other studies point in the same direction and seem to say that if depriving Russian gas will be difficult, it will also be surmountable with some effort. But nothing works, the German government considers that it cannot ask its citizens and its industrialists to do without Russian gas, the effort would be too strong. This is where the argument of the Nobel Prize in economics Paul Krugman is the strongest. I explain his thinking: Germany has always given moral lessons to other countries. When the public debt crisis erupted in 2012, Germany wanted to punish Greece for tampering with its public accounts. She insisted on introducing austerity despite the sacrifices it imposed on Greek citizens. The idea was to teach a lesson: Greek growth fell by 21% and unemployment rose to 27%, so these Greeks had to be punished, the Germans said. Now, what does Paul Krugman say? That Germany has no memory. She has been told for years and years that she has become too dependent on Russian gas. But the Germans haven’t listened for years and the result is here today. For Paul Krugman, unlike Greece, Germany has received many more warnings to stop its mismanagement. But if morality plays a role in Germany’s economic policy, we discover that this morality is only valid for small countries and not for itself. Paul Krugman concludes from this that Germany is the weak link in the democratic world’s response to Russia’s aggression.

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