podcast
The director of the Institute of German Economics in Cologne warns against an import stop for Russian natural gas and demands that Germany should instead consider its own production. An industrial nation cannot do without the production of basic materials.
Against the background of the energy crisis, Michael Hüther, the director of the Institute of German Economics (IW), advises also to think about gas production in Germany – and to overcome previous taboos. “We have to ask ourselves whether we shouldn’t also mobilize fracking in Germany and gas production here,” Hüther said. The strong reservations about the technology are “morally inconsistent” since the Germans have no problem importing gas from other countries, regardless of how it was funded. “It doesn’t add up.”
Hüther warned against further increasing energy costs for companies through an embargo on Russian natural gas imports. “We are running into a tense economic situation,” said the IW boss. A stagflation, i.e. a combination of low growth figures and high price increases, is a conceivable scenario for the coming years. In this situation, an import ban cannot be coped with. “We cannot replace the quantities from Russia at the same speed,” said Hüther. There is also the danger of weakening yourself to such an extent that it becomes impossible to support other states such as Ukraine.
“Do we do it with industry or without it?”
In general, the IW boss sees Germany in comparatively good shape, despite the foreseeable loss of prosperity. In his view, the labor market is still robust and companies could still absorb the growing risks. However, Hüther warned against approaching the upcoming change as a result of turning away from Russia, new supply chains and conversion of the energy supply without considering the manufacturing companies. “Ultimately, it’s about: do we do it with the industry or without it?” he said. The comparison with Great Britain shows the risks involved in shutting down industry in favor of a service society – for example with regions that are left behind. “There are income differences that go far beyond what we know here,” he said.
With a view to the federal government, Hüther advocated forgoing tax increases for the upcoming tasks and instead to handle the debt brake more flexibly or to reform it. “If we don’t invest now, it will be much more expensive in the long term,” said the IW boss. Both the urgent renewal of the infrastructure and more funds for the Bundeswehr cannot be financed with tax increases if the country’s economy is not to be severely damaged.
Listen
- How the atmosphere was at the federal government’s closed conference in Meseberg
- Which is why the IW boss considers an oil embargo against Russia to be manageable
- Why Hüther remains optimistic despite everything
All episodes can be found directly at , or or via .
Source: Stern

Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.