High electricity and gas prices are crushing the European economy, and Germany is not shied away from the impact. It was the parliament of Europe’s strongest economy that gave the green light to a €200 billion package to protect German businesses and households from the consequences of the energy crisis.
“Prices have to go down, so the government will do everything in its power. And that is why we are presenting a huge defensive shield,” Federal Chancellor Olaf Scholz said as he unveiled the package to support the domestic economy at the end of September. On Friday, the 200 billion dollar injection was also sanctioned by the Bundestag, the lower house of the German parliament.
Gas and electricity price brakes
The plan, which will run until spring 2024, includes, among other things, price brakes on gas and electricity and related compensation. The main goal is to eliminate the effects of expensive energy that crush German industry and households.
Some European countries are against
But some European countries do not like the federal government’s plan. The main argument of critics of the German rescue package is that it turns the energy crisis into a competition between national budgets, and that the aid unjustifiably favors German companies over their competitors from other countries. The European Commission has already said that it will look into the package for precisely these reasons.
