German consumers can expect energy prices to continue to rise. This is what German Economy Minister Robert Habeck (the Greens) said in Berlin after a meeting with trade unions. The state cannot absorb all of the energy price increases, neither for companies nor for consumers. “This is the hard and bitter truth,” Habek said.
The federal government has imposed various aid programs to ensure liquidity and keep companies in the market. “However, they cannot prevent the passing of prices,” the economy minister said. It should support the national economy. Otherwise, we will not pass this period. I cannot spare anyone this harsh message.”
Most companies operate on long-term contracts at fixed rates. A number of companies won’t feel large-scale price hikes until 2023, when those prices for products will rise for the first time. He believes that one has to bear in mind that the time for cheap fossil energy is over. Habeck explained that price signals help increase energy efficiency.
manpower shortage
The federal government’s support package includes a loan program from the state investment bank KfW, as well as energy support for businesses. Habek said the direct grants would be subject to very strict conditions. The ministry expects about 4,000 companies to apply for these subsidies, but the state has several others.
The German economy is currently under great pressure. In addition to rising energy prices, there is an acute shortage of labor. In addition, supply chains have become vulnerable due to the war in Ukraine. Habeck also noted the problems related to Corona in Shanghai, which has the largest container port in the world.
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