ANTI-CRISIS MEASURES OF THE FEDERAL GOVERNMENT IN THE ENERGY SECTOR

Abstract

The article analyzes the deterioration in the situation in the German energy sector that began in 2021 and continued in 2022. It was complemented by a significant intensification of the crisis surrounding Ukraine. Its consequence was the introduction of a harsh sanction’s regime against Russia by the collective West, primarily by the United States and the European Union. As part of multiple sanctions packages in March-June, restrictions on a number of domestic primary energy sources were imposed, which were major contributors to rising global oil and gas prices and curbed Russian gas supplies to Europe. This has become one of the most important factors driving inflation growth in Germany and raising expectations of gas shortages on the eve of the next autumnwinter season. Since the beginning of the year, the government has taken a number of measures in the energy sector, which, however, at the beginning of the second half of the year were only able to partially alleviate the looming crisis. The author assesses the effectiveness of German anti-crisis instruments and the prospects of maintaining a consensus in the coalition government on further steps to resolve the situation. Particular attention is paid to the conflict over the Nord Stream 1 gas pipeline.