Jul 07, 2022
German Minister for Economic Affairs, Robert Habeck, warned last month that if Russia cut gas supplies to the EU further, then Germany and the world markets could face a Lehman moment. Here we are and its not only affecting gas: the German benchmark electricity price for example has surged to an all-time high above 340 EUR per MWH. The current talks about multi-billion bail-outs (see German Uniper) or full-fledged nationalizations (see French EDF) will be necessarily followed with actions redefining of the European energy landscape. All the consumers, both private and industrial, will ultimately pay a high price for the current Lehman moment.