Gas price brake in the "energy war": Scholz announces 200 billion "defense shield" - Union skeptical

Created: 09/30/2022, 10:20 am

By: Florian Naumann

The traffic light Zoff about the gas levy seems to be over: a chancellor's press conference is scheduled for the afternoon.

The topic: “Current energy supply issues”.

• Defense shield

  as

  "double boom"

  : Scholz announces 200 billion fund against high gas prices.

• Gas price

  brake instead of gas

  surcharge

  : money comes from loans, Lindner sees the debt brake in force.

• Habeck

  sees

  Germany

  in a “critical situation”: Economics Minister calls for energy saving.

Update from September 29, 5:20 p.m .:

The Union still sees many unanswered questions about the planned additional relief of up to 200 billion euros in the energy crisis.

"We now have a price tag," said parliamentary group leader Friedrich Merz (CDU) in Berlin.

However, one does not know which instrument should be purchased with it.

It is not clear how this number was calculated.

The 200 billion euros would be piled up as further new debt in shadow budgets.

It remains completely open how the gas and electricity price brake should be designed.

"These are quite complex projects," says Merz.

A legislative marathon can be expected in the coming weeks and months.

At this point in time he is not committed to rejection, it depends on the details and the design.

CSU regional group chief Alexander Dobrindt emphasized that a protective shield should be welcomed in principle.

In addition to the design, a necessary expansion of the energy supply is also open.

"The question of nuclear energy is still completely inadequately resolved." He therefore sees "no double boom, but this decision leaves double question marks".

Gas prices: "defense shield" worth 200 billion euros should remedy the situation

Update from September 29, 2:49 p.m .:

The press conference of the heads of the traffic light coalition has ended.

The bottom line is a “defense shield” worth up to 200 billion euros to lower gas prices, some unusually pithy rhetoric – and also a bit of partisan positioning.

Questions about the structure of the announced gas price brake remain unanswered for the time being.

It is intended to clarify a proposal from the gas price commission that has already been set up.

The defense shield, praised by Chancellor Olaf Scholz (SPD) as a “double boom”, should run until the end of winter 2023/24 at the latest.

The money should come from loans and flow into an economic stability fund - the debt brake should remain in force apart from this measure, as Finance Minister Christian Lindner (FDP) emphasized.

He had always refused new loans.

The declared aim of the traffic light is to support both consumers and businesses in order to emerge from the energy crisis with healthy domestic demand and a "robust economy".

The gas levy is passé and, according to Vice Chancellor Robert Habeck (Greens), should be collected by decree.

The three politicians addressed clear words to Kremlin chief Vladimir Putin.

"We are in an energy war for prosperity and freedom," said Lindner.

Habeck spoke of an economic attack, Germany held "against".

Scholz emphasized that Russia uses energy as a weapon.

Tenor of the traffic light politicians: Germany has the economic strength to defend itself - and will do so with the "defense umbrella".

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Habeck also appealed again to the people in Germany: Especially in the private sector, "consumption is too high".

Robert Habeck at the gas price press conference with Chancellor Olaf Scholz and Christian Lindner (from left) © IMAGO/Leon Kuegeler/photothek.de

Update from September 29, 2:34 p.m.:

“The gas levy will now go down in the annals of history,” confirmed Habeck when asked.

The levy will be withdrawn by regulation.

The letters are in view of the actually planned start on October 1st.

printed, but not too much money could have been collected.

If so, it will be refunded.

However, the reduction in VAT will remain in place - the funds required for this will not come from the "defense shield".

Lindner and Habeck make final clarifications: Lindner emphasizes that the volume of the umbrella is up to 200 billion euros.

If the measures work well, this amount does not have to be exhausted - that would "of course please the Minister of Finance".

Habeck announces foreign policy efforts indirectly.

"The money goes away," he says, "and the money collects elsewhere."

Out of necessity, Germany transfers many funds abroad.

However, he expects “at least the partners” to recognize this emergency and act accordingly.

Gas price brake: According to Habeck, the exact structure is still unclear

Update from September 29, 2:26 p.m .:

There are apparently still a few open questions when it comes to the specific design of the gas price brake.

"The path will be that the gas commission that we convened will submit a proposal," says Habeck.

The experts are working "at full speed" - results could be available "sooner" than expected.

The aim is to support consumers and the economy in a good balance without setting false incentives.

Lindner does not expect any resistance from the Union.

The need for the measures is clear, the opposition itself has asked for relief money – “without making any proposals for financing”.

Meanwhile, at the same time as the press conference, there is news of a new peak in inflation in Germany.

Update from September 29, 2:23 p.m .:

For the time being, Scholz apparently does not want to make any specifications for saving energy.

Measures have already been taken to save gas with coal-fired power plants and the extension of the running times of nuclear power plants in southern Germany, he says when asked whether a gas price brake would create the wrong incentives.

New laws also contribute to the expansion of renewable energies.

Update from September 29, 2:19 p.m .:

Scholz does not see any major problems in reaching an agreement with the federal states in the relief dispute.

The 200 billion would come from the federal government - and would also be about reducing inflation when fulfilling the tasks of the states.

However, the chancellor wants to keep the federal government's 50 percent share in the relief package.

Added to this is the “defense screen”.

Lindner emphasizes that a “compliance by the federal states” would now be welcome.

There should be no money from the defense shield for anything other than “crisis-limiting measures.

Gas prices: Lindner attests "energy war" - and sees the debt brake in force despite the credit

Update from September 29, 2:13 p.m.:

“We are in an energy war for prosperity and freedom,” Lindner opens his contribution.

The aim of the attack is to "destroy much of what many people have built up for decades".

Germany cannot accept that, the new plans are a "crystal clear answer to Putin".

Mobilize economic strength when necessary.

According to Lindner, a stability and economic fund will be filled with 200 billion euros - for the period 2022 to 2024. In the financial crisis, 500 billion euros were mobilized, explains the finance minister.

However, the package should not fuel inflation.

The debt brake should therefore continue to apply to the general budget.

The aim is to use “liberation energies” – i.e. renewable energies.

But Lindner also allows himself to point out: In his opinion, the nuclear power plants should run until 2024.

The economy as a whole will also be "permanently" strengthened with investments already planned.

During the term of the defense shield, there will be no measures associated with disproportionate bureaucratic effort for the economy, promises the FDP boss.

Gas prices: Habeck sees Germany in a "critical situation" - "Consumption must go down"

Update from September 29, 2:06 p.m .:

Habeck speaks of a “big decision”.

Germany is threatened with an economic and social crisis in the face of an "economic attack" by Vladimir Putin on the Russian economy, warns the Vice Chancellor.

With the 200 billion package "we prevent that, we counteract it".

The solution is "more general, simpler and faster" than other variants.

This is possible because of the large volume.

"I would like to thank Christian Lindner," explains Habeck.

Apparently the finance minister has now moved away from sticking to the debt brake.

Germany does not have to get through the crisis "somehow", but as a "strong, robust" economy, says the Green Party.

There are now "other instruments" than the gas surcharge.

However, Germany is still “in a critical situation” and consumption has to go down, stresses Habeck.

The memory is full, but more is being used than is necessary, especially in the private sector.

Gas price brake: Scholz announces 200 billion "defense shield" on credit - PK now LIVE

Update from September 29, 2 p.m.:

The traffic light government’s press conference started on time.

Chancellor Olaf Scholz has the floor – who, unlike his ministers Robert Habeck and Christian Lindner, is only connected due to his corona disease.

Russia uses energy supplies as a weapon, he emphasizes.

At least since the destruction of the gas pipelines, it has been clear: "No gas will be delivered from Russia in the foreseeable future."

"The prices have to go down," emphasizes Scholz at the same time, for pensioners as well as for companies.

This should succeed “with a large defensive screen”.

There should be 200 billion euros for this - procured by "borrowing".

The gas levy is “no longer needed”.

"We have an efficient economy, we have stable public finances," added the Chancellor.

Electricity and gas prices would now “drop drastically”.

It's a "double boom," says Scholz, referring to his own quote from the peak phase of the corona pandemic.

Robert Habeck, Olaf Scholz - connected - and Christian Lindner (from left) at the "Defense Screen" press conference.

© JOHN MACDOUGALL/AFP

Gas price cap instead of gas surcharge?

Traffic lights apparently agreed – Scholz, Habeck, Lindner give press conference

First report :

Berlin – After weeks of wrangling, the traffic light coalition has apparently agreed on an alternative to the gas surcharge.

This is reported by several media, including

and

.

What the now targeted solution looks like initially remained open.

Gas surcharge passé?

Ampel wants to announce news about "energy supply".

There could still be clarity in the afternoon: the Federal Chancellery has invited Chancellor Olaf Scholz (SPD), Economics Minister Robert Habeck (Greens) and Finance Minister Christian Lindner (FDP) to a press conference at 2 p.m.

The topic: "Current issues of energy supply in Germany".

No further details were given.

According to media reports, the state will limit the price increase for consumers.

There is also a solution for the financing, it said.

Criticism of the federal government's lack of activity had recently grown.

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At this point we report on the planned press conference in the live ticker.