future of the German economy
Baerbock defends plans for industrial electricity prices
September 10, 2023, 4:06 a.m
How can the energy transition succeed without strangling the industry? With a state-subsidized industrial electricity price, say the Greens. There is criticism from the coalition partners for this. Foreign Minister Baerbock still believes the subsidies are the right step.
Foreign Minister Annalena Baerbock has countered fears that a possible electricity price subsidy for German industry would lead to distortions of competition in Europe. “The discussion about a temporary industrial electricity price has only just begun for us, of course in close coordination with the Commission and within the framework of European law. And that’s how it has to be, because we take the concerns of our European friends seriously,” said the Green politician the newspapers of the Funke media group and the French newspaper “Ouest-France” according to a preliminary report.
“At the same time, it is important that our energy-intensive industry in Germany, France and all of Europe has a future. Because it would not help anyone if steel were no longer manufactured in Duisburg or glass no longer in Arques, but only at Chinese production sites. ” In the internal market, Europeans are more interconnected than any other region in the world.
Scholz skeptical, Lindner against it
In view of the high energy costs, Federal Minister of Economics Robert Habeck had proposed a state-subsidized industrial electricity price for a transitional phase – this is also what the SPD parliamentary group as well as trade unions and many business associations want. Chancellor Olaf Scholz has so far been skeptical.
The FDP with Federal Finance Minister Christian Lindner is against it. Lindner and suggests as an alternative an extension of the peak compensation for electricity tax. “I am not convinced that we should subsidize the price of electricity for a few companies at the expense of all taxpayers,” Lindner told “Welt am Sonntag”.
“A solution that shifts debt onto the common people and distorts competition to the detriment of medium-sized businesses is not a solution.” Certain consumers could then continue to use energy cheaply and would potentially make the scarce supply more expensive for others, said the FDP politician. Lindner advocates a different approach. The so-called peak compensation, through which large consumers are reimbursed for electricity tax, is being phased out as a so-called climate-damaging subsidy. “The Bundestag could advise extending it for another year if funds for counter-financing can be found elsewhere,” said the Finance Minister.