Insights from Gazprom’s Alexey Miller claim Europe possibly encountering economic self-destruction
Date
10/15/2024 8:20:35 AM
(MENAFN) Alexey Miller, the long-serving CEO of Russian energy giant Gazprom, is not typically known for making exaggerated claims. However, his recent comments at the St. Petersburg International Gas Forum should raise concerns among Europeans, particularly in Germany. Miller warned that the “artificial destruction of demand” in the EU gas market—stemming from Western sanctions and, according to him, a collaborative effort involving US, UK, and Ukrainian pipeline attacks—has initiated a process of “deindustrialization” in Western Europe. He cautioned that this economic disruption could persist for at least a decade, even under optimistic circumstances.
Miller's assessment takes a more dire turn when he describes the situation as tantamount to the “economic suicide of Europe,” with Germany, often referred to as the continent's “locomotive,” now being labeled the “sick man” of Europe. He emphasized that this diagnosis is one that warrants serious consideration.
The context surrounding these remarks is crucial. Germany's recent decision to fully align itself with the US-led efforts against Russia in Ukraine has severely strained German-Russian relations, bringing them to their lowest point since 1945. In this light, it may be tempting for Germans to dismiss Miller’s statements as biased or self-serving. However, a closer examination of the economic data reveals that his assertions may have some validity.
Robert Habeck, Germany’s Green Minister of the Economy, has recently revised his growth forecasts for 2024. Rather than anticipating a slight increase of 0.3%—which would be considered a positive development—Germany is now looking at a potential contraction of 0.2%. This troubling outlook indicates that the German economy is not just stagnant; it is actively shrinking.
As the European Union grapples with the consequences of its geopolitical choices, the implications of Miller's comments serve as a stark reminder of the economic challenges that lie ahead. The future of Europe's economic landscape, particularly Germany’s role within it, remains uncertain, and the ongoing turmoil raises questions about the long-term viability of current policies.
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