Securing Energy for Germany as a Business Location – But How?

Threat of Gas Import Freeze Increases Energy Policy Challenges

Germany has decided to become a pioneer of a climate-neutral energy supply. The associated far-reaching structural change in the generation, transport and use of en-ergy requires considerable adjustment efforts in the economy and society. Since the Russian invasion of Ukraine and the growing concern about gas imports from Russia, the challenge for energy policy has once again increased dramatically.

• How is German energy policy dealing with this double stress test for security of supply and affordability?
• Can the energy policy triangle of climate protection, affordability and security of supply still be saved?
• And which energy policy course is best for Germany as an industrial location in the short, medium and long term?

Jochen Homann, former State Secretary, former President of the Federal Network Agency has discussed these questions at the Munich Economic Debate on the topic "Securing energy for Germany as a business location - but how?" with the attending audience and the network community.

General Information on the Presentation

The event was part of the series "Economic Consequences of the Russian Invasion of Ukraine".

The war in Ukraine is a geopolitical watershed. The world could disintegrate into an American-dominated bloc and a Chinese-dominated bloc. The war fundamentally changes the outlook for security and prosperity. There is a threat of stagflation, a combination of weak growth and high inflation. How should policymakers respond? Monetary policy faces a dilemma: Raising interest rates can curb inflation but would further dampen growth. Fiscal policy can only redistribute the burden of rising prices; it cannot eliminate it. In terms of energy policy, diversification of energy imports leads to greater security of supply, but also higher costs. In addition, military spending is rising.

• What consequences does the war have for Germany as a location for energy-intensive industries?
• In which policy fields and in which measures should the scarce resources flow?
• And what role does the EU play?