“The world may soon be on the brink of a global recession,” warns the International Monetary Fund, in a special update to its economic forecast published this week, just three months after the previous forecast. Among the scenarios that worry the fund’s economists: the cessation of the flow of Russian gas to Europe.
This is not just a theoretical scenario. This week, this scenario began to materialize, when the government company “Gazprom” announced that it would reduce the amount of gas flowing to the continent through the “Nord Stream” pipeline to only 20% of its capacity. The announcement sent gas prices soaring, crashed the German stock market, and led the German economy minister to warn the public that “the time has come to understand that we are facing a serious crisis.”
How did Germany allow itself to reach a situation where it is so dependent on Russia? What is the role of former chancellor Angela Merkel in the story, and what is the importance of the Nordstream gas pipeline? Why are the chimney sweeps returning to the roofs of Berlin, and how are the Germans preparing for the coming cold winter? Assaf Oni, reporter for Globes in Europe, is a guest on the ‘Submarine’ podcast, with all the explanations.