Germany to invest 200 billion euros to cap electricity and gas prices: ‘It is necessary’

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Germany 200 billion euros will be invested in reducing energy prices for consumers under an agreement reached by the coalition government social democrat, green Yes libertarian announced by the German Chancellor, Olaf Schultz.

Scholz proposed a package of measures, funded by credit, in which he highlighted electricity price caphis cabinet is preparing, and stop petrol pricesa committee has been formed for this purpose, which will soon make recommendations.

“Prices have to come down. In order for them to do that, we’re going to open a big umbrella for those retired peopleThis employeeThis familyThis villagers and cities so everyone can get ahead and pay their bills,” he said.

The foreign minister also added that the decision made the new gas rates, scheduled to be implemented on October 1, redundant to cover losses for companies in the sector, as they will now receive direct aid through the new fund.

[Alemania podría nacionalizar la principal compañía de gas del país, Uniper, mientras empeora la crisis energética]

“Necessary Step”

“It’s a dramatic step, but it’s also a necessary one,” Scholz told a news conference in Berlin, where he was accompanied by ministers of economy and finance, Green robert Harbeck and liberals Christianity Lindnerrespectively.

To finance the new “umbrella” that includes caps on electricity and gas prices, the Economic Stabilization Fund created during the pandemic will be used.

will provide the above 200 billion Euros until 2024 could be used, said Finance Minister Lindner, who recalled that 600 billion euros were invested through this mechanism to deal with the damage caused by the coronavirus.

“The umbrella is comprehensive and effective,” Lindner said, stressing that the measure will not affect the effectiveness of the debt brake next year and is designed to protect the economy “without fueling inflation.”

“To be clear, we do not follow great Brittany its expansionary monetary policy,” he said, referring to the Bank of England’s latest decision.

For his part, Economy Minister Harbeck has defended the removal of the controversial gas price, which would increase prices to end consumers by 2.4 cents per kilowatt-hour.

He said the approval had been granted due to the need to maintain the gas purchasing capacity of the three major importing countries, which had been nationalized. Unite, Safety (old Gazprom slang) Yes Vietnam Gas Group.

[Alemania dice que el Nord Stream queda inutilizado para siempre: “La corrosión es irreversible”]

However, there is now a better way to capitalize the affected companies through a stabilization fund.

However, he explained that the reduction in the VAT on gas, which was introduced to offset the impact of the aforementioned rates, from 19% to 7%, will continue as a “relief” measure for consumers.

Habeck, who holds the rank of deputy prime minister, also reiterated his call for energy conservation as gas consumption has not been reduced as much as necessary, although the situation remains “critical” despite the government’s measures following a cut in Russian gas supplies.

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