Putin’s “love at first sight” heralds the end of globalization, warns Olaf Scholz Business

He said: “The particular phase of globalization that we have experienced in North America and Europe over the past 30 years, with reliable growth, high levels of value added and low inflation, is coming to an inevitable end.

“One reason for this is that low-cost producers in the Global South are gradually becoming prosperous economies with their own demand, which aspire to the same level of prosperity as we do.

He admitted that globalization had made losers and said it needed to get “smarter”.

Mr Scholz said the rush to boost energy security “will have an impact on European economies”.

“We feel that, not least through rising energy prices and, of course, that poses a very particular challenge for a country like Germany, which is an industrialized nation.”

Germany is one of the countries most dependent on energy imports from Russia and has refused to support a gas embargo to put pressure on the Kremlin. German households and factories are being hit by soaring energy prices and the Bundesbank has warned of a sharp contraction if Russia’s gas supply is cut.

“We cannot allow Putin to win his war, and I firmly believe he will not win it,” Scholz said.

“He failed to achieve any of his strategic goals. Russia seizing all of Ukraine seems less likely now than it did at the start of the war, not least because of the remarkable defensive actions carried out by the Ukrainian army and the European population.

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This notice was published: 2022-05-26 12:34:25

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