German union chief warns of collapse of entire industrial chains

Sputnik Brazil – The country’s top union official warns that major German industries could collapse due to cuts in Russian natural gas supplies.

Even before the energy crisis reached its current alarming levels, several German industrial officials warned Chancellor Olaf Schulz of the danger of entire chains being jeopardized in the face of shortages caused by Western sanctions on Russian gas.

“Because of the gas bottlenecks, entire industries are in danger of permanent collapse: aluminium, glass and chemical industries,” Yasmine Fahimi, president of the German Trade Union Confederation, said in an interview with Bild am Sonntag newspaper. “Such a collapse would have serious consequences for the entire economy and jobs in Germany.”

According to Bloomberg, the union leader said the energy crisis is already pushing inflation to record levels, and called for a cap on energy prices for households. Fahini says the rising costs of carbon dioxide emissions mean more burdens on families and businesses, and that the energy crisis could lead to social and labor unrest.

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On Saturday, Economy Minister Robert Habeck said the government was working on ways to deal with rising costs, but he did not say what measures would be taken. Habek has previously warned that tightening Russian gas supplies could lead to deeper turmoil, comparing the situation to Lehman Brothers’ role in sparking the 2008 financial crisis.

Russia reduced gas supplies via Nord Stream 1 (Northern Stream) by 60%, initially through Canadian sanctions that were responsible for removing a major part of the pipeline’s full operation. Despite this, the entire pipeline is scheduled to be shut down this month for pre-scheduled maintenance.

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