section_path: Causes/Energy policy
section_name: Energy policy
paragraph_text: Energy policy
  
  Economists cited Germany's reliance on cheap Russian gas as one of many primary factors for Germany's economic stagnation, which began in the 1960s and intensified after reunification and the liberalization of the German energy market. Prior to the invasion, 55% of Germany's natural gas supply came from Russia, which also represented the primary source of Germany's oil and coal imports. This caused Germany's industry and broader economy to become dependent on cheap Russian gas, in addition to complacency brought on by Germany's economic boom that caused its government to ignore the European Commission 's urging to diversify their energy supply. Germany's dependency became a vulnerability following Russia's invasion of Ukraine in 2022. The abrupt disruption of this energy relationship forced Germany to rapidly diversify its energy sources, leading to a 32.6% reduction in gas imports by 2023. The subsequent sanctions and supply disruptions led to a 35% increase in energy prices, contributing to inflation and economic instability.
  
  Another factor cited was Germany's phasing out of its established network of nuclear power, a process initiated and led by The Greens and ultimately enforced by the Second Merkel cabinet. This decision was influenced by concerns resulting from high-profile nuclear accidents, particularly the 2011 Fukushima nuclear accident, which created an energy supply gap. Germany until March 2011 obtained one-quarter of its electricity from nuclear energy, using 17 reactors. The following gap was primarily filled by Russian natural gas, inadvertently increasing dependency on Russian ties. Despite early leadership in renewable energy adoption, Germany's transition has been hampered by antiquated bureaucratic obstacles, complicated and slow processes for approving projects for renewable energy, and local resistance to infrastructure projects, each discouraging further investment in renewable sectors. As of 2024, renewable sources accounted for just over 52% of the country's electricity supply, insufficient to meet industrial demands.
  
  CEO of energy company RWE Markus Krebber warned that the energy crisis could lead to permanent damage to German industry due to gas prices becoming structurally higher compared to European countries. The necessary transition away from prior sources of natural gas and diversification to other energy sources would result in prolonged detrimental effects to energy-intensive industries, potentially leading to significant and permanent declines in structural demand.
  
  During October 2022, Habeck accused Russian President Vladimir Putin of trying to destabilize Germany's and Europe's economy and society by forcing Germany to put sanctions on Russian gas, and insisted that he would fail "as he is currently failing on the battlefield in Ukraine”. He further accused Russia of enabling Germany's dependency on cheap Russian gas, calling it " blackmail ".