Germany: The energy crisis at the center of the two-day meeting of the federal government

With the central theme of “the impact of the conflict in Ukraine on the security of energy supply in Germany”, the federal government is meeting today and tomorrow at the Messeberg Castle in Brandenburg, looking for solutions to the energy crisis and, above all, consensus between the government partners.

The ruling coalition is under pressure to provide further relief to citizens, with the three parties turning against each other. A key point of contention at the moment is the 2.419 cents/kWh “gas tax”, which was due to be introduced on October 1 to bail out energy providers.

As it turned out, companies that are not facing problems would also benefit from the extraordinary fee, and the Ministry of Economy under the “green” Robert Hambeck is now being asked to review – if not abolish – the measure.

The Liberals (FDP) have set a two-day deadline for Mr Habeck, while the leader of the Social Democrats (SPD) Lars Klingbeil accused the finance minister of technical errors.

“Finally, nice words are not the only thing that counts in politics,” Mr. Klingbeil told Die Zeit newspaper. At the same time, the leader of the Greens’ Parliamentary Group, Constantin von Notch, spoke of Chancellor Olaf Solz’s “poor performance, poor poll numbers and memory gaps in the Cum-Ex scandal”, confirming the difficulties of the three parties’ coexistence, especially in a period crisis.

Ahead of the release of the third relief package, amounting to 30 billion euros, the parties are claiming the greatest possible benefits for their audience. Thus, the FDP wants inflation compensation in taxation, which would benefit more those who pay higher taxes, the SPD favors direct financial assistance for low income earners, families, students and pensioners, while the Greens, with similar positions, recommend measures such as a single ticket for mass transport at 49 euros/month.

SPD and Greens are calling for a tax on profits or a change in the taxation of company cars, which the FDP rejects. The only point on which the three parties agree is the urgency of the new measures.

SOURCE: AMPE

Source: Capital

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