The German government is giving 200 billion in aid for the energy crisis.
The German government is creating a € 200 billion aid fund to relieve citizens and businesses from rising energy costs. Chancellor Olaf Scholz (SPD), Economy Minister Robert Habeck (Verdi) and Finance Minister Christian Lindner (FDP) presented their concept of " Economic Defense Shield against the consequences of the Russian war of aggression " on Thursday afternoon. .
"Prices have to go down," Scholz said. The German government will do all it can to achieve this. This should help retirees, families, craft businesses and industry pay the prices. How it will bring prices down remains a mystery, aside from government grants paid to power companies.
Finance Minister Lindner said, in view of Russia's interruption of gas supplies: "We are in an energy war." With the defensive umbrella, Germany is now showing its "economic weight". It is not clear how this accords with the "debt brake" which either jumps even in 2023, or will simply be circumvented with the "Shadow Budget", that is, by not charging the costs at the federal level, but leaving them either at the lander level or as sunk costs, not accounted for, of subsidiaries, guaranteed, etc. A clever trick that allows the Germans to pretend not to be in debt.
Economy Minister Habeck affirmed that the energy crisis risks turning into an economic and social crisis, so this spending on aid to companies is to be considered as an “expenditure for resistance” against Russia. A beautiful poetic image, which we do not know if it will greatly influence Putin.
Taking a proportion following the GDP, the expenditure of 200 billion in aid to contain the price of gas and energy in Germany corresponds to an expenditure of theoretical 100 billion in Italy, where, however, the possibility of a budget gap is still denied, on the contrary, the current plan envisages a consolidation with a reduction in expenses. Who knows if the new government will change its mind.
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The article The German government gives 200 billion in aid for the energy crisis. comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/il-governo-tedesco-da-200-miliardi-di-aiuti-per-la-crisi-energetica/ on Thu, 29 Sep 2022 15:57:47 +0000.