Wednesday, April 13, 2022

Trying to Explain Energy Expropriation

 Well....in recent days....the Economics Minister (Habeck, Green Party) has come to talk about a draft idea.....'grabbing' energy service companies.  Yes, in effect....nationalizing them (proper term: expropriation).

Chief reason?  If there is a cut or massive chaos to arrive....the only way that the government can resolve the chaos....is to run the energy sector themselves, with priorities set.  All of this....because of the Ukraine-Russia war.

This effort would require the Energy Security Act to be changed.  Odds of this?  No one really openly discusses this part of the issue.

I have my doubts that the CDU/CSU Party folks would agree to this.  I also think great reservations will come from the FDP Party.  So passing a change will require a lot of problems to be worked out in front of the public.

The basic idea?  The energy crisis would occur, with natural gas cut off.....then the system would go into a trustee-situation....with some government figure (yet to be named) as the energy 'czar' (my term for the job) takes control.

The general problem with expropriation?  By law, you have to compensate companies for the action.....meaning someone is going to get paid to 'shut-up' and not whine about the mess.

If I doing the odds on this?  Summer-break is about 3.5 months away.  I don't see this worked out and passed by that point.  So, I'm thinking it'll be the top September problem, and discussed day by day.  

Should regular Germans worry?  If it reaches the level where Russian natural gas is turned off.....this take-over/expropriation issue will be the least of your daily worries.  

It's all just part of the bluffs and poker-game going on.

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