Daniel Gros: Russian gas cuts will not kill the German economy

Germany seems better placed than most of its main competitors to weather the crisis caused by reduced Russian deliveries

Over the past decade, German industry has paid about 10% more for natural gas than its competitors in other major European economies. Picture: AP

Much of the conventional wisdom about Europe’s current natural gas crisis — triggered by reduced deliveries from Russia — rests on two assumptions: That the German economy depends on cheap Russian gas, and that this bet has gone spectacularly wrong.

But while German industry is strong, and the country imports a lot of natural gas from Russia, a closer inspection of the numbers and economics involved does not support the prevailing narrative.