Gas crisis: economists in favor of European coordination

In a letter to Minister Robert Habeck (Greens), the scientific advisory board of the German Ministry for Economic Affairs warns against national solo efforts in gas procurement. „If gas allocation is to be done on the basis of market prices, Germany will drive the price up and other countries may be tempted to cut off supplies to Germany in order to prevent the price at home from rising too high,“ the economists led by chairman Klaus M. Schmidt of LMU Munich wrote last week. „If European cooperation is to work here, Germany will have to approach the other European states and offer compensation payments.“