The Limited Times

Now you can see non-English news...

Christian Lindner in Davos on energy aid: 200 billion for "double boom" will probably not be exhausted

2023-01-17T15:40:09.848Z


The state wants to provide relief from high energy prices with up to 200 billion euros. But quite so much money is probably not needed, said Finance Minister Christian Lindner at the World Economic Forum in Davos.


Enlarge image

Finance Minister Lindner (photo from March 2022): the lower energy prices reduce the psychological strain

Photo: Michael Kappeler / dpa

The bill for the Treasury may be smaller than feared: Finance Minister Christian Lindner assumes that Germany will not exhaust the 200 billion euro pot to cushion the high energy prices.

"My expectation is that we won't need the entire protective shield," said the FDP politician at the annual meeting of the World Economic Forum in Davos.

The reason is that energy prices are currently not as high as feared.

With the “double boom” worth up to 200 billion euros, the federal government wants to finance price brakes for gas and electricity as well as corporate aid until 2024.

Lindner emphasized that the federal government could not maintain the subsidies indefinitely.

He referred to both the budgetary situation and the risk of government intervention fueling inflation.

The finance minister predicted that inflation would remain high this year.

However, the federal government will probably correct its previous medium-term forecast downwards.

"I expect the inflation rate to drop," said Lindner.

There are already first signs of this.

mic/dpa

Source: spiegel

All business articles on 2023-01-17

Trends 24h

Latest

© Communities 2019 - Privacy

The information on this site is from external sources that are not under our control.
The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.