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EU allows Germany to offer more industrial electricity price relief
🇩🇪 Germany /Energy & Infrastructure

EU allows Germany to offer more industrial electricity price relief

From Die Zeit · () German

Translated from German, summarized and contextualized by DistantNews.

At a glance

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  • The EU has allowed the German government to provide greater relief to industries struggling with high electricity costs.
  • This increased support, costing approximately one billion euros, is necessary due to current energy price hikes driven by the war in Iran.
  • The decision eases budget negotiations for the upcoming year, as the government aims to protect industry and jobs.

Germany's industrial sector will receive more support to cope with soaring electricity prices, following approval from the European Union. The EU Commission has permitted the government to offer greater relief than previously allowed, a move that will cost the federal budget around one billion euros.

Minister of Economic Affairs Katherina Reiche stated that the EU followed Germany's argument that this step is necessary given the "enormously high energy prices" resulting from the current crisis. The significant rise in energy prices, exacerbated by the war in Iran, has placed German companies under increasing pressure.

The Commission followed our reasoning in this point that this step is necessary given the enormously high energy prices through the current crisis.

— Katherina ReicheMinister of Economic Affairs Katherina Reiche explaining the EU's approval for greater industrial electricity price relief.

Previously, companies could not simultaneously benefit from the industrial electricity price and the electricity price compensation, which already covered CO2 costs. The EU's allowance for parallel support aims to prevent budget cuts from negatively impacting industry and jobs. The government is set to decide on the budget for the upcoming year in early July, with this additional cost potentially complicating negotiations.

These we must provide.

— Katherina ReicheMinister of Economic Affairs Katherina Reiche on the additional one billion euros needed for the relief measures.
DistantNews Editorial

Originally published by Die Zeit in German. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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