Germany to mobilise €200bn economic ‘shield’ to field energy crisis

(EurActiv, 30 Sep 2022) Berlin announced a massive government aid programme, fuelled by new debt, to get Germany through the energy crisis, resulting in broad acclaim from industry.

Germany, an ‘industrial superpower’ of the world, is under pressure. Its long-time advantage of cheap Russian energy has ended, energy prices are spiking, and companies are reducing output or moving away.

The influential industry lobby group BDI warned that the “substance of the industry is under threat.” This, the German government seeks to alleviate.

“Russia is waging an energy war against Europe. We will preserve the economic substance of our country,” said German Chancellor Olaf Scholz on Thursday (29 October) as he presented a €200 billion plan to support industry and households.

He called it a “double-whammy,” referring to the famous “bazooka” statement he used regarding Germany’s ample support for an economy struck by shutdowns amid the pandemic.

To avoid breaking Germany’s infamous ‘debt brake’, the constitutional limit to debt uptake, the government is re-activating the economic stabilisation fund, which had been sufficiently empowered during the COVID-19 crisis.

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EurActiv, 30 Sep 2022: Germany to mobilise €200bn economic ‘shield’ to field energy crisis