Edition: International | Greek
MENU

Home » EU Actually

Does Germany cross a line?

Germany’s Chancellor Olaf Scholz announced a new €200 billion gas subsidy fund that will benefit big and small companies in his country

By: N. Peter Kramer - Posted: Wednesday, October 5, 2022

"Germany’s image as a member state that favours budgetary discipline and minimum state intervention has suffered. "
"Germany’s image as a member state that favours budgetary discipline and minimum state intervention has suffered. "

N. Peter Kramer’s Weekly Column

Germany’s Chancellor Olaf Scholz announced a new €200 billion gas subsidy fund that will benefit big and small companies in his country. Scholz claims to champion a government that ‘leaves no one behind’. In Brussels, France and Italy already protested loudly, with commissioners Thierry Breton (France) and Paolo Gentiloni (Italy) breaking ranks to cry foul about the mega-fund.

Member states are shocked by Scholz’s going alone approach to tackling the gas price crisis. Critics argue that the German subsidy plan has not been thought through to consider certain consequences as the impact on EU solidarity or how the measure would incentivise saving natural gas. According to Politico, one EU official even said: ‘Germany has shown a big middle finger to the rest of the EU with this package. It has really raised the temperature with the other countries’.

Germany’s image as a member state that favours budgetary discipline and minimum state intervention has suffered. It looks like Berlin appears to have one rule for itself and another one for others. The German going alone approach can also becoming a problem for European Commission President Ursula Von der Leyen, who until now played Berlin’s game by refusing to put forward a proposal for an EU-wide gas price cap.

In a letter Commissioners Breton and Gentiloni wrote : ‘It is more important than ever that we avoid fragmenting the internal market, setting up a race for subsidies and calling into question the principles of solidarity and unity that underpin our European project’. Is it a difficult choice : solidarity with the European project or to leave your voters out in the cold? The German Liberals and Greens were on his side, when the Socialist Scholz made his choice.  

READ ALSO

EU Actually

Britain trapped in EU-US trade war

N. Peter KramerBy: N. Peter Kramer

The UK finds itself caught in a transatlantic trade war between the European Union and the United States

View 04/2021 2021 Digital edition

Magazine

Current Issue

04/2021 2021

View past issues
Subscribe
Advertise
Digital edition

Europe

Bulgaria fumes at Rutte’s ‘offensive’ Schengen comments

Bulgaria fumes at Rutte’s ‘offensive’ Schengen comments

Bulgaria’s president and caretaker ministers snapped back at Dutch Prime Minister Mark Rutte for his comments about crossing the Bulgarian border with a €50 bribe

Business

Innovative start-up scoops top Arctic award

Innovative start-up scoops top Arctic award

The International Polar Foundation has announced the winner of the first ever “Laurence Tran Arctic Futures Award” in recognition of efforts to build a “more sustainable future."

MARKET INDICES

Powered by Investing.com
All contents © Copyright EMG Strategic Consulting Ltd. 1997-2022. All Rights Reserved   |   Home Page  |   Disclaimer  |   Website by Theratron