The German government plans to use mechanisms it set up to deal with the coronavirus crisis to be able to take stakes in utilities at risk of collapse amid the energy crisis, Reuters reports, citing draft legislation. .
Under the plan, the government will be able to take voting or non-voting stakes in companies operating in critical sectors of the economy, the agency said.
The German government is trying to deal with the fallout from the rally in energy prices following Russia’s invasion of Ukraine. Germany’s Economy Minister Robert Habeck recently warned of a repeat of the crisis caused by the collapse of Lehman at the height of the 2008 financial crisis, as suppliers face exorbitant costs to meet their obligations to their customers.
Source: Capital
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