German Official Warns Of Gas Shortages, Bankruptcies, Massive Price Hikes That Will Send "Shockwaves Throughout The Country"
A gas shortage and high prices will send “shockwaves through the country,” leading to landlords cutting the heat for tenants and widespread company bankruptcies, warned Klaus Müller, the head of Germany’s Federal Network Agency, which is the regulatory office for electricity, gas, telecommunications, postal services, and railway markets.
Müller paints a bleak picture about the crisis in an interview with German newspaper Rheinische Post, saying it will “send shockwaves throughout the country. Banks will ramp up their business with installment loans, and ailing companies will fall into insolvency.”
Müller’s office, which is a federal agency within the Federal Ministry for Economic Affairs and Climate Action, has a bird’s eye view of the economic situation in Germany and also special insight into how economic conditions will develop into the future.
Müller says he expects gas prices to continue to climb, resulting in increased inflation that goes far beyond energy. He also warns that there will be a dramatic lack of gas in the winter, which could lead to landlords turning down the heat to save on energy. In turn, Germans may have to grapple with colder apartments.
In a sign that the German government is operating under the assumption that a potential crisis could develop in winter, there are already talks about potentially lowering heating requirement for landlords.
“Tenancy law stipulates that the landlord must adjust the heating system during the heating period so that the minimum temperature falls between 20 and 22 degrees Celsius. The government could temporarily lower the heating requirements for landlords. We are discussing this with politicians,” Müller said.
https://www.zerohedge.com/commodities/winter-coming-german-agency-head-warns-gas-shortages-bankruptcies-and-massive-price