[CHAOS]

[b]Vulnerabilities in German and EU Economy[/b]

An increase in the flow of resources from Europe to U.S. can be expected if Germany begins to experience a controlled economic crisis. The pace of the economic developments in the EU depends almost without alternative on the state of the German economy. It is Germany that bears the brunt of the expenditure directed towards the poorer EU members.

The current German economic model is based on two pillars. These are unlimited access to cheap Russian energy resources and to cheap French electric power, thanks to the operation of nuclear plants. The importance of the first factor is considerably higher. Halting Russian supplies can well create a systemic crisis that would be devastating for the German economy and, indirectly, for the entire European Union.

The French energy sector could also soon being to experience heavy problems. The predictable stop of Russian-controlled nuclear supplies, combined with the unstable situation in the Sahel region, would make French energy sector critically dependent on Australian and Canadian fuel. In connection with the establishment of AUKUS, it creates new opportunities to exercise pressure. However this issue is beyond the scope of the present report.

[b]A Controlled Crisis[/b]

Due to coalition constraints, the German leadership is not in full control of the situation in the country. Thanks to our precise actions, it has been possible to block the commissioning of the Nord Stream 2 pipeline, despite the opposition of lobbyists from the steel and chemical industries. However, the dramatic deterioration of the living standards may encourage leadership to reconsider its policy and return to the idea of European sovereignty and strategic autonomy.

The only feasible way to guarantee Germany’s rejection of Russian energy supplies is to involved both sides in the military conflict in Ukraine. Our further actions in this country will inevitably lead to a military response from Russia. Russians will obviously not be able to leave unanswered the massive Ukrainian army pressure on the unrecognized Donbas republics. That would make possible to declare Russia an aggressor and apply to it the entire package of sanctions prepared beforehand.

Putin may in turn decide to impose limited counter sanctions — primarily on Russian energy supplies to Europe. Thus, the damage to the EU countries will be quite comparable to the one to Russians, and in some countries — primarily in Germany — it will be higher.

The prerequisite for Germany to fall into this trap is the leading role of green parties and ideology in Europe. The German Greens are a strongly dogmatic, if not zealous, movement, which makes it quite easy to make them ignore economic arguments. In this respect, the German Greens somewhat exceed their counterparts in the rest of Europe. Personal features and the lack of professionalism of their leaders — primarily Annalena Baerbock and Robert Habeck — permit to presume that it is next to impossible for them to admit their own mistakes in a timely manners.

Thus, it will be enough to quickly form the media image of Putin’s aggressive war to turn the Greens into ardent and hardline supporters of sanctions, a ‘party of war’. It will enable the sanctions regime to be introduced without any obstacles. The lack of professionalism of the current leaders will not allow a setback in the future, even when the negative impact of the chose policy becomes obvious enough. The partners in the German governing coalition will simply have to follow their allies — at least until the load of economic problems outweighs the fear of provoking a government crisis.

However, even when the SPD and the FDP are ready to go against the Greens, the possibility for the next government to return relations with Russia to normal soon enough will be noticeable limited. Germany’s involvement in large supplies of weapons and military equipment to the Ukrainian army will inevitably generate a strong mistrust in Russia, which will make the negotiations process quite lengthy.

If war crimes and Russian aggression against Ukraine are confirmed, the German political leadership will not be able to overcome its EU partners’ veto on assistance to Ukraine and reinforced sanctions packages. This will ensure a sufficiently long gap in cooperation between Germany and Russia, which will make large German economic operators uncompetitive.