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Olaf Scholz supports the proposal for the new European gas pipeline

2022-08-12 20:25:13Kosova&Bota SHKRUAR NGA REDAKSIA VOX
Olaf Scholz supports the proposal for the new European gas pipeline
Olaf Scholz

The German Chancellor emphasizes the advantages of the possibility to connect Portugal and Spain with Central Europe through France.

German Chancellor Olaf Scholz said he supports the idea of ​​a new gas pipeline linking Portugal and Spain to Central Europe via France, saying it would improve Europe's energy security.

Speaking on Thursday at his first press conference this summer, Scholz said he had discussed the idea with the leaders of Spain, Portugal and France, as well as European Commission President Ursula von der Leyen.

"I think we should realize such a project," he said, adding that there would also be "other connections between North Africa and Europe that will help us diversify our energy supplies."

He did not specify the project he was referring to, but Spain and Portugal have pressed France to proceed with a planned gas pipeline project through the eastern Pyrenees, which was shelved in 2019 after resistance from Paris. Madrid wants the project to be financed by the European Commission.

The lack of alternative pipelines has been identified by the EU as a major obstacle in its efforts to wean the continent off its dependence on Russian gas. Brussels has made consolidating the bloc's energy infrastructure, eliminating bottlenecks and overcoming delays in pipeline projects a priority.

However, such a project will not be able to be realized so quickly for Germany. Berlin is scrambling to find alternative sources of gas after Russia drastically cut supplies through Nord Stream 1, the Baltic Sea pipeline that is the main channel for sending Russian gas to Europe. NS1 is currently operating at only 20 percent of its capacity.

The gas shortage has pushed up prices and hampered Germany's efforts to fill its gas reserves ahead of the winter season. The industry fears the government could be forced to declare a gas emergency, which would mean rationing supplies.

Germans are bracing for rising energy bills this winter amid a shrinking economy, rising inflation and problems in supply chains that continue to plague the industrial sector. The most recent problem is the drop in water levels in the Rena River, which is harming the trade that is carried out through transport through this river.

Scholz acknowledged that Germany is going through "difficult times" but said the government "will do everything it can to make sure people get through this difficult period", repeating his slogan: "You will never walk alone".

He said he was working on a third financial package for the hardest-hit citizens and outlined a proposal made public this week by finance minister Christian Lindner to change tax brackets to take high inflation into account. , as "very, very useful". Lindner said this change would relieve 48 million people of the fiscal burden.

Scholz said that, even with the new financial aid package, Germany will be able to adhere to the "debt curb", which is already part of the Constitution, starting next year as planned. This debt curb sets a strict limit on the federal government's borrowing capacity.

Asked by reporters if he expected an increase in social tensions this winter, as the gas crisis could worsen and energy costs could continue to rise, he replied: “No, I don't think there will be unrest in this country. Because Germany is a state of social welfare".

Scholz said he was confident Germany would be able to fill the shortfall in gas supplies from Russia through new liquefied natural gas import terminals being built on the North Sea coast. These terminals will start operating at the beginning of next year.

"We will be in a situation where we may have to pay a lot to be supplied with gas, due to the state of the global market, but we will always have enough supplies," he added./ Financial Times


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