Media’s ‘Sick Man of Europe’ Diagnosis for Germany Needs a Second Opinion

Reporting has consistently ignored what is likely a primary source of Germany’s economic illness: the sabotage on the Nord Stream pipelines that carried natural gas from Russia to Europe.

Originally published at FAIR.org

Since the 19th century, the epithet “sick man of Europe” has been used to describe European nations undergoing economic hardship or social restlessness—first the Ottoman Empire in the 1860s, then Russia in 1917, France in the 1950s, Britain in the 1960s, Italy in the 1970s and Germany in the late 1990s/early 2000s.

Corporate media outlets have recently been applying the phrase to Germany again in response to the Central European nation’s negative GDP growth. “Is Germany the Sick Man of Europe?” a Bloomberg video (8/3/23) asked. A CNN article (8/24/23) explained “Why Some Are Calling Germany ‘the Sick Man of Europe’ Once Again.” CNBC (9/4/23) reported, “Germany Is the ‘Sick Man of Europe’—and It’s Causing a Shift to the Right, Top Economist Says.”

But their reporting has consistently ignored what is likely a primary source of Germany’s economic illness: the sabotage on the Nord Stream pipelines that carried natural gas from Russia to Europe.

Blowing up the economy

There is substantial evidence that the “sick” German economy has been significantly impacted by the loss of the pipelines, and it can be verified that the dearth of inexpensive Russian gas is a major contributor to Germany’s succumbing to a recession. Natural gas accounts for around a quarter of Germany’s overall energy mix. In 2021, the year before fighting over Ukraine’s secessionist Donbas region deepened, Germany imported 142 billion cubic meters (bcm) of gas, with 52% of it originating from Russia. In the three years leading up to the current conflict, Germany’s natural gas consumption averaged 89 bcm. (Germany was able to reexport much of its imports, reaping the economic benefits from selling the surplus gas to neighboring countries.)

Nord Stream 1 alone was vastly larger than any other Russian gas pipeline to Germany, annually delivering up to 59 bcm. Germany’s Federal Office for Economic Affairs and Export Control does not identify the infrastructural origin of imported gas, so the public remains unaware of the exact volume of gas imports coming from Nord Stream. But Germany lost, at least for the foreseeable future, as much as a staggering 66% of its gas consumption, and 42% of its supply.

“The German economy is the European Union’s greatest economic casualty of the war in Ukraine,” economist Jeffrey Sachs told FAIR:

The destruction of Nord Stream, the loss of trade with Russia and the boomerang effect of US/EU sanctions will weigh very heavily on the German economy, and hence on the EU-wide economy, for years to come.

Scrambling to find replacements for Russian gas, Germany has turned to liquified natural gas (LNG) from the United States—and it may even turn to Russia LNG, too.Scrambling to find replacements for Russian gas, Germany has turned to liquified natural gas (LNG) from the United States—and it may even turn to Russia LNG, too. The European Union and the United Kingdom saw their imports of US LNG increase more than threefold in the first four months of 2022 from the previous year. At the same time, Europe is now importing greater quantities of LNG from Russia than ever before. According to a report in Spiegel (9/12/23), “There are many indications that this fuel will ultimately also be burned in Germany.”

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