# Germans told to unite over energy crisis amid EU divisions Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-10-11 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Germany Prepared for Winter Gas Shortage, Chancellor Says Meta Description: Chancellor Olaf Scholz reassures that Germany can handle a winter gas shortage due to Russia's actions with unity from companies and households. URL: https://financedigest.com/germans-told-to-unite-over-energy-crisis-amid-eu-divisionshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-10-11t104831z1lynxmpei9a0kdrtroptp4europe-energy-1736815049239-compressed.jpg) By Rachel More and Paul Carrel BERLIN (Reuters) – Germany can weather a winter gas shortage caused by Russia’s war on Ukraine provided companies and households pull together, Chancellor Olaf Scholz said on Tuesday ahead of a meeting of EU ministers divided over the best response to the energy crisis. EU energy ministers will gather in Prague on Wednesday to seek progress on a price cap and other measures after Russia slashed its supplies that once covered about 40% of Europe’s gas needs. Ukrainian President Volodymyr Zelenskiy called on Group of Seven (G7) states to back a [cap on Russian oil](https://www.financedigest.com/oil-prices-rise-after-opec-keeps-output-steady-russian-price-cap-imposed.html "Oil prices rise after OPEC+ keeps output steady, Russian price cap imposed") and gas exports. [Talks among European Union](https://www.financedigest.com/telecom-italia-in-talks-with-unions-on-up-to-2000-job-cuts-in-italy.html "Telecom Italia in talks with unions on up to 2,000 job cuts in Italy") nations have failed to produce agreement on a proposed cap, with industrial powerhouse Germany and other wealthier EU members fearing it could make it harder to source supplies. Germany’s planned heavy spending to shield its citizens from the full impact of [soaring energy costs](https://www.financedigest.com/amazon-other-retailers-revamp-free-shipping-as-costs-soar.html "Amazon, other retailers revamp ‘free’ shipping as costs soar") has also caused unease among some countries in the 27-nation EU that say it is more than poorer members can afford. Germany suggested EU states could use money from the 800 billion euro ($778 billion) [“Next Generation” pandemic](https://www.financedigest.com/living-with-covid-where-the-pandemic-could-go-next.html "‘Living with COVID’: Where the pandemic could go next") recovery fund to help tackle other crises, such as the energy crisis, a government spokesperson said on Tuesday. Scholz said the country could not expect Russian [energy supplies](https://www.financedigest.com/ges-investors-seek-solutions-to-renewable-energy-supply-chain-challenges.html "GE’s investors seek solutions to renewable energy, supply chain challenges") for the foreseeable future but should be able to cope with that. If we all [continue to adapt](https://www.financedigest.com/scholz-if-germany-continues-to-adapt-we-will-make-it-through-winter.html "Scholz: if Germany continues to adapt, we will make it through winter") to the changed situation – the citizens, the companies and the politicians – then we will get safely through this winter,” Scholz told an engineering conference. There have already been signs of demand picking up in [Germany on cooler days despite](https://www.financedigest.com/germany-heading-for-recession-despite-new-relief-plan-economists.html "Germany heading for recession despite new relief plan – economists") the need to curb consumption. FOUR-DAY [WEEKS AND CANDLE LIGHT](https://www.financedigest.com/small-business-advice-week-guiding-smes-to-a-brighter-future-in-light-of-brexit.html "Small Business Advice Week guiding SMEs to a brighter future in light of Brexit") Across Europe, analysts have put the gas shortfall at almost 15% of average winter demand and said Germany needed to cut energy consumption by around a fifth, with worrying implications for Europe’s [biggest economy](https://www.financedigest.com/biggest-economy-in-the-world.html "Biggest Economy in the World") whose industry has relied on abundant, affordable energy supplies. The energy [crisis has had knock-on effects across Europe as businesses have passed on extra costs](https://www.financedigest.com/indefensible-uks-sunak-under-fire-over-response-to-cost-of-living-crisis.html "‘Indefensible’: UK’s Sunak under fire over response to cost of living crisis"), squeezing household budgets. Industry forecaster S&P Global Mobility said that, in a worst case scenario, Europe’s energy crisis could cut its [car production by close to 40% through the end](https://www.financedigest.com/eu-approves-law-to-end-sales-of-new-co2-emitting-cars-by-2035.html "EU approves law to end sales of new CO2-emitting cars by 2035") of 2023. The auto [industry is widely](https://www.financedigest.com/tcs-global-trend-study-on-artificial-intelligence-reveals-industry-wide-investment-by-2020.html "TCS Global Trend Study on Artificial Intelligence Reveals Industry Wide Investment by 2020") regarded as a gauge of economic health. Market research released on Tuesday showed that rather than splashing out on new cars, Britons are stocking up on electric blankets, candles and energy-efficient slow cookers to lower fuel [bills and prepare for possible power](https://www.financedigest.com/eus-planned-reforms-aim-to-better-protect-power-bills-from-market-swings.html "EU’s planned reforms aim to better protect power bills from market swings") outages. In Italy, Intesa Sanpaolo, the country’s [biggest bank](https://www.financedigest.com/the-recent-bank-of-england-meeting-the-biggest-rate-hike-recession-warning-and-the-fallout.html "The recent Bank of England meeting, the biggest rate hike, recession warning and the fallout"), is discussing with unions a four-day working week for its 74,000 local staff in part to curb energy use. [GERMAN GAS STORAGE](https://www.financedigest.com/german-gas-storage-levy-adds-to-energy-consumers-woes.html "German gas storage levy adds to energy consumers’ woes") NEARLY 95% FULL Scholz said Germany, which had relied more heavily than most European states on Russian gas and has been racing to find alternative sources, had almost hit a target of [filling its gas storage](https://www.financedigest.com/analysis-russian-gas-flow-too-low-to-fill-europes-storage.html "Analysis – Russian gas flow too low to fill Europe’s storage") facilities in 95% before the onset of winter. Other [European economies](https://www.financedigest.com/german-economy-expected-to-grow-modestly-in-2023-european-commission.html "German economy expected to grow modestly in 2023 – European Commission") once dependent on Russia gas, such as Italy, have also been replenishing storage and securing supplies from other countries including Algeria and Azerbaijan. Italy could however face a gas shortfall in the [winter of 2023-2024 without a new regasification terminal that is planned](https://www.financedigest.com/factbox-hurdles-for-germanys-planned-nuclear-winter-reserve.html "Factbox-Hurdles for Germany’s planned nuclear winter reserve") in Tuscany, the chief executive of energy major Eni Claudio Descalzi said on Tuesday. Russia progressively reduced gas flows through the [Nord Stream](https://www.financedigest.com/denmark-invites-nord-stream-operator-to-help-salvage-unidentified-object.html "Denmark invites Nord Stream operator to help salvage unidentified object") pipeline and also via other routes since the West hit Moscow with sanctions in response to its invasion of Ukraine in February. Gas via [Nord Stream](https://www.financedigest.com/new-intelligence-points-to-pro-ukraine-group-in-nord-stream-attack-nyt.html "New intelligence points to pro-Ukraine group in Nord Stream attack -NYT") stopped completely in September and any hope of resuming shipments to Germany through that route was dashed last month by suspected sabotage. President Vladimir Putin said on Tuesday that Russia was not working against anyone on energy markets, a week after Washington criticised a decision by producer group OPEC+, of which Russia is a member, to slash [oil production](https://www.financedigest.com/oil-rises-on-saudi-oil-production-expectations.html "Oil rises on Saudi oil production expectations"). ($1 = 1.0305 euros) (Additional reporting by Kate Abnett in Brussels, Nina Chestney and Nick Carey in London, Elvira Pollina and Valentina Za in Milan and Alvise Armellini in Rome; Writing by Keith Weir; Editing by Barbara Lewis, Edmund Blair and Tomasz Janowski) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---