Germany’s Government Considers Strengthening Foreign Trade Act Amid Nord Stream 2 Pipeline Concerns
The German government is reviewing a potential amendment to the Foreign Trade Act, driven by the possibility of the Nord Stream 2 pipeline operator’s sale. The background to this move is the September 2022 sabotage of one of the pipeline’s strands.
The Nord Stream 2 AG, based in Zug, Switzerland, means that the German state currently lacks the legal means to prevent a sale. According to the Economy Ministry’s response to a Green Party inquiry, reported by the Spiegel, an acquisition “would not currently fall under the investment review under the Foreign Trade Act.”
The US government, under Donald Trump, has proposed the pipeline’s repair and operation. There is reportedly already a US investor interested in the project. The Nord Stream 2 AG is in the process of being wound down and could be sold. The German government aims to prevent the pipeline’s commissioning.
Internal discussions are underway within the government to determine whether to introduce a revision of the legal foundations of the investment review in this legislative period, according to Economy Minister Katherina Reiche of the CDU. Green Party representative Michael Kellner sees a need for action to grant the government a veto power.