The Germans for sure always have a unique perspective when it comes to taking a decision for the common good. Berlin, undoubtedly is a major force but has often failed to rally worthy allies and had to undertake a major load on itself for things to work out.
Germany has already been suffering through an energy crisis that can trace its routes to quashed gas exports from Russia owing to Berlin acting against the Kremlin in the war. The country does not share the idea of live together, die together and that is exactly what it has been advocating in the modern times. The EU member nations were toying around with the idea for a broader price cap targeting all wholesale gas trade. Well, the idea was as it is a sham because the European nations for a fact are in no position to dictate terms.
Also, oil price is set to undergo a massive hike after OPEC+ decided to slash down production. Now, with prices set to take the high road, the EU cannot set a cap on gas or oil prices or else they could risk suspension of imports that could further incite the crisis. The subject of price caps on energy prices has attracted criticism from Putin more than once. There is little doubt that if Europe imposes a cap, Putin would further respond to their economic aggression by drastically reducing energy flows, which will cause prices to soar.
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Although there is a certain divide in the EU over the price caps. France, Italy, Poland and 12 other EU countries urged the Commission to propose a broader price cap targeting all wholesale gas trade, the Netherlands, Denmark and Germany – Europe’s biggest gas buyer – are among those opposed against the measure as they believe capping prices could endanger the security of supply as it undermines EU’s ability to attract gas deliveries.
Well, the latter grouping is exactly right. Germany is the biggest buyer of gas and a cap would threaten its supplies which would further contribute to its deindustrialization already owing due to already high prices. If the EU passes the proposed cap, then the producing nations would quash exports and that would further trigger a price hike. The European governments would then have to subsidize the additional cost which would eventually destroy their economies.
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As a result, Germany is wary of the whole situation. However, the German leaders despite blocking the cap in the union are set to subsidize their own companies under a €200 billion scheme. This has attracted anger from other nations in the union who accuse Germany of acting in self-interest.
Poland accuses Germany
Among other nations, Poland accused Germany of “destroying” the EU’s internal market by subsidizing its own businesses while opposing a pan-European cap on gas prices.
“The richest country, the most powerful EU country is trying to use this crisis to gain a competitive advantage for their businesses on the single market. This is not fair, this is not how the single market should work,” Polish Prime Minister Mateusz Morawiecki said.
You see, the whole situation has created rival blocs between the union which would eventually threaten the very concept of the EU. And to tell you the truth, Germany is not entirely wrong to have advocated the benefit of its people before going out charity.
