Government to lower power and gas pricesĪside from lowering demand and ramping up the supply of energy through steps the government is already taking – such as expanding renewables, building up an LNG import infrastructure and the limited extension of two of the remaining nuclear power plants – the new defence shield includes the following measures: The government would make use of this time to boost the rollout of renewables, Lindner said. He added the “defence shield” would buy time so the country can work towards a new post-crisis normality. “Germany is using its economic firepower in this energy war,” said finance minister Christian Lindner. Soaring energy cost drove consumer price inflation to a record 10 percent in September. It lowered prices for petrol and diesel – a controversial measure – and funded a 9-euro-per-month national public transport ticket during the summer. The government has so far introduced several relief packages for citizens. Economists have warned that Germany is headed into a recession. “The energy crisis is undermining social peace, and we are counteracting this,” Habeck said, adding the relief package would provide unbureaucratic support to citizens and businesses.Īcross the continent, rising energy prices and inflation are putting citizens and the economies under pressure. The government was awaiting recommendations from an expert commission on how best to introduce the subsidies to lower the gas price, which are expected in mid-October.Įconomy and climate minister Robert Habeck said high energy prices were a threat to social stability. Scholz said the government would scrap the planned gas levy, and instead support struggling importers directly. It allows Germany to borrow up to 200 billion euros to finance the “ gas price brake” (see below), support gas importing companies like Uniper, SEFE and VNG which have struggled with the high procurement prices, and “ additional support measures for businesses struggling due to the war.” The government did not explain how much of the funds would be used for which of the measures. The package is to be financed by the “Economic Stabilisation Fund” originally set up to support the economy during the pandemic. German chancellor Olaf Scholz said the government will establish a “defence shield” with a volume of up to 200 billion euros to cushion the impact of expensive energy on citizens and businesses until 2024.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |