Germany to spend billions to tackle high energy prices

Germany plans to spend up to 200 billion euros helping consumers and businesses cope with the surge in energy prices

Germany Scholz (Copyright 2022 The Associated Press. All rights reserved)

Germany plans to spend up to 200 billion euros ($195 billion) helping consumers and businesses cope with surging energy prices.

Chancellor Olaf Scholz said Thursday that the government is reactivating an economic stabilizing fund previously used during the global financial crisis and the coronavirus pandemic.

Scholz said Russia’s decision to cut natural gas to Europe and the recent leaks on two pipelines showed further Russian energy supplies couldn’t be expected in the near future.

Finance Minister Christian Lindner insisted that the fund would not entail further regular borrowing, saying Germany is “expressly not following Great Britain’s path.”