US EditionGerman government to subsidize industry’s energy prices in bid to revitalize economy
The subsidy aims to lower electricity costs to about 5 euro cents per kilowatt hour for energy-intensive firms, costing €3–5 billion and requiring EU and parliamentary approval.
- On Thursday, Germany's governing coalition agreed to subsidize energy prices for heavy industry with an industrial electricity price of about 5 euro cents per kilowatt hour from Jan. 1 through 2028.
- After weak growth, Germany's manufacturing- and export-heavy economy has been held back by high energy prices, Chinese producers, lack of skilled workers and excessive bureaucracy.
- Finance Minister Lars Klingbeil estimated the measure will cost between 3 and 5 billion euros, with the subsidy aimed at supporting energy-intensive industries amid high energy prices.
- Talks with the European Commission are near-complete and the government said it assumes it will get permission, but the measures need parliamentary approval, and coalition leaders also agreed to cut a tax on airline tickets starting in July.
- The package sits alongside a 500 billion euros fund as the government's panel of independent economic advisers forecast growth of 0.9% next year after a 0.2% rise this year.
57 Articles
57 Articles
The coalition committee decides to withdraw the controversial increase. Greenpeace speaks of a fatal signal for the climate.
State-subsidised industrial electricity price, reduction of aviation tax and a German fund for investments in startups: At their coalition committee on Thursday evening, the Union and SPD took several decisions to strengthen the economy. Chancellor Friedrich Merz (CDU) said that the goal was to strengthen the competitiveness of companies in Germany and to secure jobs. Business associations welcomed the decisions, but demanded further steps."A st…
The leaders of CDU/CSU and SPD discussed various topics in the coalition committee. The focus was on discharges of the industry in electricity prices and a reduction of the ticket tax in aviation. An agreement was reached on the following points.
The list of unsolved problems remains long. It ranges from the heating law to the pension package. German chancellor Friedrich Merz announces at least an agreement on the burnout.
Economy and energy were central topics of the coalition committee. One result: German industry should be helped by its own electricity price. Another: the ticket tax in aviation should be reduced.
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