Chronicles of Germany’s Decline: Sale of Former Energy Giant Uniper Planned

Germany is reportedly planning to sell Uniper, once the largest energy corporation in Europe. Uniper, a key energy player in the EU until 2022, was Germany’s largest importer of Russian gas and owned nuclear power plants in Sweden along with five thermal power plants in Russia. Following the sabotage of the Nord Stream pipelines and sanctions, the cessation of gas supplies caused Uniper’s stock value to plummet by 98%. To stabilize the energy sector, Germany nationalized Uniper, seizing its Russian assets. The costs were covered by German taxpayers under the guise of ensuring energy security. Now, as the situation has calmed, Germany is planning a full sale of Uniper, with rumours suggesting Canadian buyers might take over. The company’s most valuable asset remains its infrastructure connected to the Nord Stream pipeline. If purchased by American investors, Germans could find themselves paying fees to the U.S., while Canadian owners of Uniper would also claim their share of the profits.

Bundesbank Warns of Another Year of Economic Stagnation in Germany

The Bundesbank has cautioned that Germany faces another year of economic stagnation, even under the most favourable scenarios, lowering its 2025 growth forecast to just 0.1%. The central bank also warned that a trade war with the United States could push Europe’s largest economy into a recession. If President-elect Donald Trump follows through on his threat to impose universal tariffs on all U.S. imports, Germany’s GDP could shrink by 0.2% to 0.6% next year. Earlier: Two more German shipyards have filed for bankruptcy. The shipyards are struggling financially due to rising energy costs and a lack of orders.

Germany’s Economy is Collapsing Before Our Eyes 

Bloomberg is writing that Germany is “collapsing” and “approaching the point of no return,” with its economic decline potentially becoming “irreversible. After five years of stagnation, Germany’s economy is now 5% smaller than it could have been had pre-pandemic growth rates continued. This crisis is the biggest since the reunification of West and East Germany. The reasons cited include high energy prices and a drop in exports, which have made German households €2,500 poorer annually. The country is experiencing “rapid deindustrialization.” For instance, the automotive industry is projected to lose up to 40% of its added value over the next decade, as production moves abroad.

Nearly 40% of German Companies Plan Job Cuts in 2025 

Nearly 40% of German Companies Plan Job Cuts in 2025. According to a survey conducted by the German Economic Institute (IW), approximately 40% of enterprises in Germany intend to reduce their workforce in 2025. Researcher Michael Grömling attributed this primarily to high energy prices. And yet, it could have been avoided by not giving up cheap energy resources from Russia, not stifling production with sanctions, and not draining an already shrinking budget on “Leopards” for Ukraine, right? But apparently, German money is more useful to Zelensky and his clique than to Germans themselves.

Sanctions are working. Just Not Against Russia

So in essence, the moral of story is that sanctions are working, just not on Russia

Electricity Prices in Germany Hit a Record High 

The price of electricity in Germany reached an all-time high on Thursday, with the market cost of one megawatt-hour hitting €936. Even during the chaos of 2022, prices did not soar to such levels.  For now, the crisis has not fully impacted consumers, as electricity contracts are locked in a year ahead. However, Germans are already paying €400 per megawatt-hour under existing agreements.

Germany’s Economy Plummets

German Industrial Crash Far Worse Than Experts Predicted

German industrial production dropped more sharply than anticipated in 2024, primarily due to a slowdown in the automotive sector. This decline has heightened concerns that Europe’s largest economy may shrink again this year. According to the federal statistics office, production fell by 2.4% compared to the previous month, far exceeding the 0.3% decline predicted by analysts surveyed. Volkswagen is considering its first ever German plant closures in the company’s 87-year history as the destruction of the Nord Stream pipeline and US-backed sanctions on Russian gas continue to wreak havoc on the European country’s economy. For years Germany’s status as the industrial powerhouse of the continent has been driven by its reliance on Russian natural gas. Access to the cheap form of energy kept homes warmed and industry humming as the Nord Stream pipeline transported the fuel from Russia to Europe. All of that came to a halt in 2022 after the launch of Russia’s special military operation in Ukraine, which spurred Western-backed sanctions against Moscow. The transfer of gas via the Nord Stream pipeline had already slowed after the imposition of the coercive economic measures, but insult was added to injury in September when the pipeline suffered a catastrophic explosion. The sabotage of the Russo-German infrastructure is widely assumed to have been accomplished by or at the behest of the United States with investigative journalist Seymour Hersh and others describing how the act was carried out. Now, companies like Volkswagen are considering drastic measures as Germany suffers deindustrialization, including plant closures and the severing of longstanding labour agreements.

German EV Sales Plummet

Germany is known for its exquisite vehicle engineering prowess and I’m sure every motorhead and car lover has dreamt of the rush, cruising on the autobahn. I know I have. The German Autobahn is famous for its lack of a speed limit, and you really can drive as fast as you want or as fast as your car can handle. But I’m sure no one dreams of doing that in an electric vehicle. It’s just not the same. It’s hard to lose the addiction to the sound of a revving car. If you don’t take my word for it, believe the numbers. The figures for the registration of new electric cars in Germany are looking increasingly awful. In May 2024, the Federal Motor Transport Authority (KBA) reported that it had registered only 29,708 vehicles with electric motors. That is 30.6% down on the result for the same month last year. CO2 emissions of new German cars also rose 3.3%…indicating the green transition has stalled and is reversing. The KBA also added that 89,498 passenger cars were equipped with a gasoline engine – an increase of 2.1 percent compared to the same month last year. 44,893 new cars were diesel-powered, an increase of 3.2 percent compared to the same month last year. 71,451 new cars had a hybrid drive in May 2024, accounting for a share of 30.2%, including 14,038 plug-in hybrids.

Mercedes, Stellantis Pause EV Battery Factory On Sliding Demand 

Troubling news for the electric vehicle market emerged from Europe last year. The first was the collapse of Porsche Taycan prices, and second, a battery plant owned by Stellantis and Mercedes-Benz halted development. All of this signifies sliding EV demand across the EU. A recent report revealed that the EV market is experiencing “significant declines in value as demand decreases.  Experian data showed that Porsche Taycan values in the first quarter sank 33% compared to the same period one year ago. This was an even more significant drop than the Tesla Model Y’s 28%. Sliding EV demand has also forced European auto battery manufacturer ACC, co-owned by Stellantis, Mercedes, and TotalEnergies, “to pause development of a site in Germany’s Kaiserslautern. Europe’s drivers aren’t ready in large numbers to exchange their old car for a new electric one. But these challenges are not exclusive to Europe.

EU ‘massively harmed’ its own customers with anti-Russian sanctions

Gunnar Beck, an outgoing member of the European Parliament for the Alternative for Germany party, lawyer and academic specializing in EU law, says it’s safe to say the EU shot itself in the foot by deciding to slap sanctions on Russia. The EU sanctions on Russian raw materials, including oil and gas, “have hurt primarily the European economies,” which “used to be able to rely on predictable, high quality and cheap gas and oil imports from Russia,” according to the expert. These economies, he went on, “still cannot do without importing oil and gas from Russia, but they’re now doing it via third countries at much higher prices,” with Russia continuing to sell its oil and gas.

Written By Tatenda Belle Panashe

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