Uniper's crisis just a prelude? The researcher anticipates that European unity will crack

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Timo Miettinen estimates that running out of gas and mutual gas disputes between Europeans will threaten in the autumn. -yhtenaumlisyyden-rakoilevan-b21aa91.jpg” alt=”Uniper's crisis just a prelude? Researcher foresees European unity cracking” />

German Chancellor Olaf Scholz interrupted his vacation because of the crisis at the energy company Uniper. [email protected] at 10:37

  • The Uniper crisis was a big political issue in Germany, Scholz interrupted his vacation.
  • Russia's gas weapon threatens Europe with a recession and an energy crisis.
  • Gas regulation threatens to become an internal dispute within the EU.
  • The Uniper crisis shows that economics and politics are connected.

Academy researcher of the University of Helsinki Timo Miettinen evaluates the economic and political dimensions of Uniper's crisis for Iltalehti. In his eyes, the compromise worked out in Germany seems in line with the goals of all parties.

– Of course a compromise, but in line with Finland's most important goals, Miettinen says.

When the split of Uniper that Finland and Fortum had hoped for was not possible, capitalizing Uniper from the German pocket was still a better option for Finland, Miettinen believes.< /p>

Uniper will be allowed to raise the price of gas from the beginning of October, but at the same time Germany will make a support package to compensate the increase in the price of gas for German consumers.

Scholz interrupted his vacation

In Finland, the opposition demanded Prime Minister Sanna Marini (sd) to end his vacation because of the Uniper crisis. Even President Sauli Niinistö would have wanted to be flown to Germany as a negotiator.

In Germany, Chancellor Olaf Scholz had to interrupt his vacation because of the Uniper crisis. Uniper has been a major topic of conversation in Germany.

– It has received a surprising amount of attention in the German media. It is so important for both industry and households, says Miettinen.

The German ay movement strongly opposed Fortum's desire to split Uniper into parts.

– It would have possibly led to larger layoffs, Miettinen opens up the reasons for the opposition of the ay movement.

What if Russia turns off the taps?

The price of gas paid by consumers will rise in Germany from the beginning of October, but the alternative was – and still is – the emptying of gas stocks in the fall. Then the problem would not be the price of gas, but the fact that there is no gas.

What would happen if Russia completely stopped supplying gas to EU countries?

– Even with the current insufficient capacity that Russia supplies, Europe is possibly drifting into an energy crisis, so of course it would deepen it, Miettinen says.

It would be a heavy blow, especially for gas-dependent countries, especially Germany. On the other hand, Russia also needs export income to finance its military economy.

Russian President Vladimir Putin is playing gas roulette with the EU. AOP

The political need to break away from Russian energy is strong in Europe, but requires investments in renewable energy and liquefied natural gas terminals.

EU unity under test

< p class="paragraph">The Uniper crisis will hardly affect the relations between Germany and Finland.

– The bigger issue is the European Commission's proposal to reduce the use of gas in Europe, mainly because Germany would save more natural gas for the winter, says Miettinen.

Miettinen describes gas as a significant problem for European unity.

– Southern Europe asks why they should save gas, when they may not even buy or use Russian gas, says Miettinen.

Miettinen believes that gas can become a big issue in the fall.

– In many Eastern European countries, natural gas is specifically used by households, which is why they don't want to cut gas use, because it means compromising on housing heating, says Miettinen.

Southern European countries can import liquid natural gas from North Africa, but it would be more difficult for Germany to replace Russian gas.

– The general situation of the EU depends a lot on Germany's economic development. The danger would be that Europe would quickly drift into a severe recession as a result, Miettinen says.

Energy is politics

According to Miettinen, energy is beginning to be understood as part of politics. So it's not just an economic issue, detached from politics.

– Energy issues have a very strong geopolitical dimension. The connection between the economy and politics can be seen in this crisis, says Miettinen.

Does the Uniper crisis show that state-owned companies and energy should be approached in a new way?

– Security of supply issues have made people think in a new way about the importance of state-owned companies and national production capacity, Miettinen answers.

The role of governments in economic life can become entrenched as the world progresses from crisis to crisis.

– State-owned companies and the state's more active financial policy are not viewed as negatively as before, says Miettinen.

Tytti Tuppurainen comments on the topic at the press conference on Friday: the best possible solution was found in the Uniper crisis. Matti Matikainen”Good alternatives were conspicuous by their absence” – the analyst evaluates the Uniper agreement on 22.7. 20:01 Germany has bigger problems than just Uniper – hoping for a mild winter and military cooperation from Russia 20.7. 7:00 Scholz: Gas prices for Germans will rise in the fall 22.7. 13:55 Here is Uniper's rescue package – three points 22.7. 12:56 p.m

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