Dhe political agenda of Federal Minister of Economics Robert Habeck in his first year in office is primarily externally determined by the Russian war of aggression in Ukraine and the resulting drastic upheavals on the energy market. The Green Party politician said on Tuesday at the East German Economic Forum in Bad Saarow that he was doing the work that had to be done, “so that we can get through the winter safely.” But he hopes that there will still be enough time during the legislative period to further develop the energy transition in a constructive manner and to advance the transformation of the German economy towards sustainability.
Habeck put his finger directly into the wound in the usual way. In an interview with FAZ editor Gerald Braunberger, he addressed the problem that the approval procedures for new wind power and solar systems were far too lengthy to make the necessary expansion possible in the coming years. Habeck unequivocally announced that he wanted to change this. “If we don’t manage to get down from the current periods of up to eight years to times that we as politicians can also take responsibility for, then we can just let it be.”
Habeck is currently in demand as a crisis manager in the fight against rapid inflation, which is being driven very strongly by energy costs. In order to increase the amount of energy and thus secure it, Germany is currently active in three areas: As Germany’s chief buyer, Habeck is currently looking for alternative energy sources to Russia in the whole world at short notice. In addition, there is the expansion of renewable energies in Germany, where Habeck is hoping for initial successes in two to three years. And thirdly, it is important to increase energy efficiency in companies and among private consumers.
“Worst idea to intervene in pricing”
The green economics minister took a critical view of the traffic light government’s latest attempt to provide relief through the tank discount. For the state it was “the worst idea to intervene in pricing”. The free-rider effects of the mineral oil companies are undoubtedly present, Habeck stated and spoke of a “moral scandal”. Even if the corporations deny this, according to Habeck, the decision to temporarily forgo tax revenue at the pump is an “invitation to foray into the state”. At the weekend, the minister made headlines with his proposal to strengthen the Cartel Office’s control of the oil companies.
Habeck said it was the better way to specifically support people who were particularly affected by the high price of petrol. “It’s expensive, but it’s the right way.” Because the state is now reaching its limits after fighting the consequences of the pandemic. One can no longer afford to go across the country with a watering can, said Habeck.
After many economically difficult years, the Federal Minister of Economics sees some encouraging signals for the future in the eastern German states. Although the east German only reaches around 80 percent of the west, this gap has closed enormously in recent years thanks to an “insane catching-up process”. The growing attractiveness can be seen in the billions invested by Tesla in Brandenburg or Intel in Saxony-Anhalt. The transformation of the refineries in Leuna away from classic oil processing towards new materials and technologies is impressive. In the meantime, the availability of renewable energies has become a key criterion for investors. And the east as well as the north of Germany have good chances, as the recent decision by the Swedish battery company Northvolt to build a gigafactory in Heide proves.
The East, like the entire country, is suffering from difficulties in finding enough workers (“the big problem of our time”). At least the strong emigration to the west has now been stopped and even reversed in the metropolises in the east. Positive impulses come primarily from the East German universities, some of which have developed a strong position in the mathematical and scientific subjects (MINT). This in turn leads to promising spin-offs of young companies (start-ups).
Finally, in order to outline the dimensions of the energy transition, Habeck tried the economist Joseph Schumpeter, whom the public primarily associates with the concept of “creative destruction”. The transformation of the German economy will inevitably bring some far-reaching changes. If petrol and oil consumption are throttled, the number of refineries will automatically drop. But this offers new opportunities, especially in a country like Germany. “So we destroy and the question is what we build on it.”