German economy minister: current energy shortage can lead to recession

The current energy shortage could lead to a recession in Germany and a credit crunch which would threaten the country's economic strength, German Economy Minister Robert Habeck said on Wednesday. "Alone from the dynamics which are now being created by speculation and fossil energies, there is already a risk of slipping into a recession," Habeck said at an event organised by the Bavarian Business Association in Munich.

Habeck said the government was tightening laws for energy security and could provide big energy firms with capital against the will of some shareholders to ensure energy supply security. "It's pretty close to expropriation what's happening there," he added.