Decisive win gives Merkel strong hand –

Angela Merkel, chancellor of Germany.

Angela Merkel, chancellor of Germany. (Photo credit: Wikipedia)

This is an excellent and balanced editorial article from the FT. It’s a MUST READ article in my view. Check it out!

via Decisive win gives Merkel strong hand –

I very much identified with the broad thrust of the FT article but particularly dwelled on the following extract:

Yet Germany’s prospects could easily darken. Its economy is over-reliant on exports, and faces rising energy costs, the result of a botched effort to bolster renewable generation.

Germany’s Achilles heel is  clearly “rising energy costs”. In my judgement, a potential solution for Germany would be to become a strategic partner in the enormous offshore Mediterranean gas and oil sector.

Let me turn this to an open question:

Is Angela Merkel‘s reelection likely to see Germany investing in the offshore Mediterranean gas and oil sector?

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2 responses

  1. Pingback: Sino-German strategic relations and investment in Cyprus offshore gas and oil? – John Gelmini « Dr Alf's Blog

  2. The answer to Dr Alf’s question is almost certainly yes because Germany’s present policy of no nuclear power is unsustainable if Germany is to keep on growing at the required rate to create jobs and prosperity.

    Currently, combined heat and power and conventional power stations plus better insulated buildings and homes, solar energy and conservation does the trick but it will not be enough. I cannot see Chancellor Merkel wanting fracking or onshore windfarms at scale, and the plutocrats behind the oil companies will not allow free energy via Tesla style “Singlepoint Energy”.

    The alternative is for Germany to assist Cyprus develop its energy resources, which will be a boon for Cyprus, and a double boon for Germany, with its historic ties to Turkey which controls Northern Cyprus and its ties by default to Greece, through the last bailout and through the assistance China has given to Greece in exchange for ownership of certain islands.

    As Dr Alf knows first-hand, the newest investment coming into Cyprus is from China as part of their “Go out and bring back in” policy.

    The Chinese no doubt have an eye to the future and are probably positioning CNOC and Sinopec to work through a more user friendly German partner as a possible alternative to the traditional Western oil companies like BP, Royal Dutch Shell, Exxon and Agip.

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