German Chancellor Olaf Scholz announced the release of 200 billion euros to cap energy prices and relieve consumers of inflation that has continued to rise since Russia invaded Ukraine.
The Government has wanted to calmly detail the details of this new device that is added to the previous support measures that already add up to around 100,000 million euros. Inflation in Germany jumped to 10.0% year-on-year in September, the highest value recorded since December 1951.
“We are in an energy war for prosperity and freedom,” added Finance Minister Christian Lindner, who stressed that the situation had worsened “after the sabotage by unknown parties” of the Nord Stream gas pipelines in the Baltic Sea.
“Clear answer to Putin”
“This energy war is about destroying much of what people have personally built for decades, what has been built for decades in the middle class, crafts and industry,” the minister said. “We cannot accept this and we are defending ourselves,” he added, presenting the new aid measures as “a clear response to Putin.”
The increase in gas and electricity prices since the post-Covid recovery and especially since the war in Ukraine has resulted in an energy crisis unprecedented in 50 years, sparing no country. Many of them have established support schemes for households and businesses and several, such as France and Spain, apply a ceiling on energy prices.
Germany is paying a heavy price for its dependence on Russian gas, which accounted for 55% of its gas imports before the war in Ukraine. Europe’s leading economy must now find other sources of supply in the spot market, where prices have soared.
Source: BFM TV
