Habeck rejects government caps on gas prices

Created: 06/07/2022, 14:16

Robert Habeck (Bündnis 90/Die Grünen), Federal Minister for Economic Affairs and Climate Protection, holds an insulation board made of wood fibers in his hands during a tour of the Internationale Handwerksmesse (IHM).

© Sven Hoppe/dpa

Germany will have to bear the price increases "in one form or another", says the Federal Minister for Economic Affairs.

However, the burden of high gas prices should be distributed “equitably”.

Munich - Federal Minister of Economics Robert Habeck (Greens) rejects a state price cap in view of the expected further increase in gas prices.

The high price increases are an "external shock" and cannot be fully absorbed by the state, Habeck said on Wednesday at the Munich Crafts Fair.

“The country will have to bear that in one form or another.” Economic ministers also believe that a price cap would send the wrong signal: “Capping the prices of a scarce commodity would send a signal: energy is not valuable, find out what you want,” said Habeck.

"We are still facing enormous price increases," said the Green politician with a view to the coming winter.

According to Habeck, the federal government wants to ensure that the burden of high gas prices is distributed "fairly", but did not go into detail.

Yasmin Fahimi, chairwoman of the DGB, spoke out in favor of capping gas prices.

In the first half of the year, gas consumption in Germany fell by 14 percent, said Habeck.

Even if you subtract a little from this number because of the warm winter, consumption was almost ten percent lower.

There is no market problem with the gas supply, since the high prices "sucked in" a lot of gas to Europe, said Habeck.

"It's a physical problem, the gas just has to get there.

(...) Unlike Italy, we don't have an LNG terminal.” dpa