[size=18pt]The 2nd Most Powerful Person in German Politics Wants Russia Sanctions Lifted[/size]
Germany's auto manufacturers are among the industries taking damage. Vice Chancellor Sigmar Gabriel is for ending sanctions



The Germans may be pushed to the point where they can no longer follow Washington's lead
This article originally appeared in German Economic News. Translated by Werner Schrimpf for Russia Insider.

The German government has, as of late, become increasingly nervous. It has been trapped by the U.S. administration; the sanctions against Russia have killed their exports, particularly since Germany’s most important export industry was sent reeling by the recent Volkswagen exhaust scandal. There is, however, not much left for the Germans than to issue an appeal for help – Germany is wedged, and it is the people that suffer.

Reuters recently reported that Germany’s minister for economic affairs, Mr. Sigmar Gabriel “encouraged” the lift of sanctions - essentially, he appealed strongly to the U.S. to cease imposing its sanctions. Those very sanctions by which the nations of Europe must abide were imposed upon them and enforced by the USA, putting huge pressure on the EU to bring EU member-states into line, regardless of local political will or economic consequences.

Mr. Gabriel argued that it would make very little sense to ask Russia for support in Syria, while simultaneously keeping the sanctions in force. In his words; “Everybody should be smart enough to realise that you cannot keep sanctions on the one hand and ask for cooperation on the other.” Gabriel stated last Friday in Berlin that a new and fairer relationship with Russia should start with a second pipeline (that is to say, a “Northern Stream”) and end in the lifting of sanctions.

According to the EU, the end of sanctions is one initiative attached to a comprehensive implementing of the Minsk agreement, which stipulates an armistice in Eastern Ukraine. The freedom fighters of Donetsk more or less complied with these rules, but the junta regime in Kiev did all that it could to fuel the situation. Gabriel argued: “The Ukrainian conflict must not strain the relationship between Europe, the U.S. and Russia in such a manner that Russia fells that it must step away as a partner to solve the crisis in Syria”.

Unfortunately Mr. Gabriel is late with his attempt. Russia has already begun its initiative in Syria and will, after all, conduct this initiative - even without having reached a consensus with the USA. To be realistic, Mr. Gabriel’s “words of peace” have no context to the Ukraine, and in the case of Syria apply solely to the extent that Germany’s chaotic policy towards millions of refugees from this region severely disturbs the delicate economic situation.

Just recently, the German government announced and promised an initiative of full-time effort and dedication to create hundreds of thousands of jobs for the unwashed masses of refugees flooding their country. However, the big car groups (Volkswagen taking the helm) will inevitably compensate for the billions of Euros in costs for penalties, court fees and so forth by shedding jobs, simply following the harsh logic of all global groups listed on the stock exchange. As well, there are other ugly symptoms of crisis – not just because of the millions of refugees entering Germany in great mobs to take advantage of German social housing, security and benefits, but also caused by the car makers’ extremely stupid failure in their attempt to cheat U.S. regulators.



Not surprisingly, the German government is nervous. Everyone is well aware that the exhaust scandal will significantly damage Volkswagen, and therefore consequentially, the whole German economy. According to estimates from the well-renowned financial information group “EuroIntelligence”, the monetary loss for Volkswagen could reach the sum of 100 billion Euros - this would exceed the cost of the Greek rescue adventure by a great deal, and painting German industry in a bleak light. As of late, the Financial Times – recently acquired by a Japanese group – is regularly running fierce attacks against the Germans, representative of the recent wave of anti-German sentiment held by investors. The whole business sector could well be severely affected, denting the German economy substantially.

Forcing the German car producers to execute the United States’ sanction-scheme against Russia caused great monetary consequences for all companies involved. Not only major car producers are affected, but suppliers as well - the German mid-sized companies representing the backbone of their economic powerhouse have been hit brutally, with cracks showing across the board. The German government had no real choice but to agree to the sanctions from the start, and to their prolongation. But now, when the exhaust scandal turns into global hysteria against the German car industry, the government is severely pressed to act.

Daimler’s CEO Dieter Zetsche distances himself and his company from Volkswagen; “We always obey legal rules, and would not manipulate our cars,” Zetsche told German newspaper ‘Frankfurter Allgemeine Zeitung’. According to Zetsche, no devices are, or would ever be installed, which could degrade the efficiency of the exhaust system. When asked whether all car producers are cheating, he stated; “[There is a] clear answer - no!”

Competitors, however, are looking to take advantage of the disaster. And more trouble is, of course, coming up on the horizon. VW cars under suspicion of manipulation are no longer licensed in Switzerland, for example. Swiss authorities are going to bar licensing of all concerned Volkswagen models until all assumed manipulations are cleared.

In Switzerland up to 180,000 vehicles are involved - these are mainly models from the brands Audi, Seat, Skoda and Volkswagen, produced between 2009 and 2014, those equipped with Diesel engines of the type 1.2 Tdi, 1.6 Tdi and 2.0 Tdi. So-called EURO-6 engines from the current lines of production are not affected.

The European Central Bank (ECB) has stopped the acquisition of secure car credits - an ECB insider explained that there will be an investigation before a decision will be taken as to whether Volkswagen will be expelled from ECB’s securities acquisition program. This practice of preliminarily banning these securities is a standard procedure, according to ECB officials.

There might be negative consequences on the stock markets. In the past, German car manufacturers used their lobby power in Brussels to get favourable rules on exhaust values. Fiat is out for revenge, and the Italian lobby group “Confindustria” has opposed the German car manufacturers for years, arguing they would misuse their power to achieve specific advantages from the EU - a powerful argument, given recent events.

A further problem with Volkswagen is that of the shareholders’ role of the German state of Lower Saxony. The minister for economy, Sigmar Gabriel, was a former advisor of Volkswagen in Brussels, taking care of the company’s interests in the framework of the European Union’s rule-making process. The prime minister of Lower Saxony, a member of the Social Democratic Party like Sigmar Gabriel, is still a member of Volkswagen’s supervisory board. Naturally, this causes a fair bit of finger-pointing, and not entirely without good reason.

Now, however, Sigmar Gabriel is asking the USA for mercy, in order to save what little can still be saved. This is, however, unlikely to happen - the American military-industrial complex is a cruel master, and evidently holds little sympathy for the German people - the German government is trapped. Worst of all, the CDU fellows within the government are used to following such a servile attitude towards the United States that they wholly outmanoeuvred the initiative of Mr Gabriel. The tragedy remains. “Corporate Germany” is, and will increasingly be, without power in global terms. It seems that the U.S. and Russia will once again give Germany the cold shoulder.

When we said that sanctions always have boomerang effects, they thought they can have their way all the time. If there is anyone that has benefited from these war of sanctions, it is Russian, in that it enable them to look inward , exploited and developing within its own capacity, re-priortised its economic and financial initiatives as well as taking bold and concrete decisions like in Syria, (while widening stronger ties with China ) without further compromise regarding the west.
On the other hand. The EU is practically the loser in this war. Farmars in Ireland, France, Poland, etc, are still struggling to find buyers for their agricultural products, and they now have to cut down on production since there is no one to buy the suplus goods which were once meant for the large Russian market. Ship builders in France and car manufacturers in Germany are counting their losses, while mother Russia is cutting deals here and there. The EU is the fool here while the US that instigated all these is unfazed back home. Now, with the EU economy facing another downhill pilgrimage, particularly the german economy, they suddenly realize that sanctions don't work anything afterall.

Well, is never to late to make amend, if the EU can summon the courage to give the US the middle finger and resume normal and cool headed activities in Europe. Otherwise, more birth pains ahead for the EU.

remove Angela Merkel from Germany, watch how Germany would regain its lost glory militarily.

america knows that their hold and dominance in Europe is because of Germany under Merkel, that's why she keeps winning elections even considering a fourth term.
a German/Russian cooperation in Europe is a nightmare the Americans doesn't want to have.

bonechamberlain:
remove Angela Merkel from Germany, watch how Germany would regain its lost glory militarily.

america knows that their hold and dominance in Europe is because of Germany under Merkel, that's why she keeps winning elections even considering a fourth term.
a German/Russian cooperation in Europe is a nightmare the Americans doesn't want to have.

I think you are correct. But i kept asking myself one question; why shoud Merkel be obliging to the US indirect declaration of war on Russia, given the fact that Germany have much to lose from the sanctions as against any other country in the Euro zone? Why is she putting at risk the profit making base of the German car industries whose major market in Europe is Russia? The thing doesn't make sense to me. But then i remembered the NSA spying scandal, and i realize they must have got something on her which they are using against her. Even Putin alluded to this in his popular Vadal's speech. He said some presidents in Europe can't even appoint their own chief of staffs whithout permission from the powers that be, which you and i know very well. Honestly, it is now very plausible that the US is blackmailing some of these leaders to act their scripts, using the NSA massive spying results.

Each time i see Angela Merkel on tv, i truely feel sorry for her.

Appleyard:
I think you are correct. But i kept asking myself one question; why shoud Merkel be obliging to the US indirect declaration of war on Russia, given the fact that Germany have much to lose from the sanctions as against any other country in the Euro zone? Why is she putting at risk the profit making base of the German car industries whose major market in Europe is Russia? The thing doesn't make sense to me. But then i remembered the NSA spying scandal, and i realize they must have got something on her which they are using against her. Even Putin alluded to this in his popular Vadal's speech. He said some presidents in Europe can't even appoint their own chief of staffs whithout permission from the powers that be, which you and i know very well. Honestly, it is now very plausible that the US is blackmailing some of these leaders to act their scripts, using the NSA massive spying results.

Each time i see Angela Merkel on tv, i truely feel sorry for her.

exactly I believe the woman is being blackmailed, but some how I doubt, cause she keeps contesting for elections, she could easily resign if she feels she is being blackmailed.

bonechamberlain:


exactly I believe the woman is being blackmailed, but some how I doubt, cause she keeps contesting for elections, she could easily resign if she feels she is being blackmailed.

Well, thats another food for thought. I just feel sorry for her.

bonechamberlain:


exactly I believe the woman is being blackmailed, but some how I doubt, cause she keeps contesting for elections, she could easily resign if she feels she is being blackmailed.

I also think the US has got something on her cos I just don't understand how she can so blindly follow Uncle Sam's instructions despite the fact that this doesn't augur well for her country (the economic blowback and all)

She also can't resign I guess cos the US needs her to continue to play that role and she's doing it just fine. If you are observant though, you'll notice that fractures have started to appear within Germany and other vassal states in Europe. Former Chancellor, Shroeder (in addition to several other incumbent government officials) have voiced their concerns about the misplaced sanctions as they have come to the realization that Germany needs Russia ( a fellow European country and one with similar history) more than they do Amerika.

You will also notice that the most enthusiastic and eager of Russophobic EU states are former Warsaw Pact/ Soviet countries. Why they hate Russia so much, I just don't get it.

Should Germany ever break rank with the United States of Anarchy, that would be the beginning of the end of their world domination.

NairaMinted:


I also think the US has got something on her cos I just don't understand how she can so blindly follow Uncle Sam's instructions despite the fact that this doesn't augur well for her country (the economic blowback and all)

She also can't resign I guess cos the US needs her to continue to play that role and she's doing it just fine. If you are observant though, you'll notice that fractures have started to appear within Germany and other vassal states in Europe. Former Chancellor, Shroeder (in addition to several other incumbent government officials) have voiced their concerns about the misplaced sanctions as they have come to the realization that Germany needs Russia ( a fellow European country and one with similar history) more than they do Amerika.

You will also notice that the most enthusiastic and eager of Russophobic EU states are former Warsaw Pact/ Soviet countries. Why they hate Russia so much, I just don't get it.

Should Germany ever break rank with the United States of Anarchy, that would be the beginning of the end of their world domination.

exactly, any German/Russia alliance would end u.s dominance in the whole Europe.

To me cold don dey come and Germany likewise most EU member need Russia now

NairaMinted:


Former Chancellor, Shroeder (in addition to several other incumbent government officials) have voiced their concerns about the misplaced sanctions as they have come to the realization that Germany needs Russia ( a fellow European country and one with similar history) more than they do Amerika.

You will also notice that the most enthusiastic and eager of Russophobic EU states are former Warsaw Pact/ Soviet countries. Why they hate Russia so much, I just don't get it.

Shroeder is on the board of Nord Stream AG. A subsidiary of Gazprom. He is not credible when it comes to analyzing Russia since there is a conflict of interest.

Missy89:


Shroeder is on the board of Nord Stream AG. A subsidiary of Gazprom. He is not credible when it comes to analyzing Russia since there is a conflict of interest.

Hmmm, quite interesting. Didn't know that!