“Energy Cost Subsidy Coming”
Habeck wants to help small and medium-sized businesses
Exploding energy costs make German companies fear for their existence. After criticism from industry and medium-sized companies, Economy Minister Habeck announced the expansion of aid packages. Businesses that are in the red should be helped quickly.
Due to the sharp increase in energy costs, Federal Minister of Economy Robert Habeck announced extended assistance to companies. The Greens politician said in the Bundestag that afternoon that the economic essence in Germany must be preserved and protected. To this end, the federal energy cost program should be expanded.
In the future, aid should no longer be directed only to companies that are involved in international trade, but also to companies that are loss-making. This applies to industry. Support is also to be extended to small and medium-sized enterprises. In addition, backups should be done quickly, Habeck said.
The federal government has launched a program in which companies can receive a subsidy for their increased natural gas and electricity costs. The Ministry of the Economy had previously stated that an expansion for medium-sized companies was expected. The Federation of German Industry, citing a survey of small and medium-sized industrial enterprises, said that the industry is facing major problems due to the extreme rise in energy prices.
Debt brake as a stumbling block?
Habeck said the federal government has set up a special fund worth 100 billion euros for national defense. With the same determination, financial resources must now be mobilized to defend the German economic essence.
The Prime Minister of Saxony-Anhalt Reiner Haseloff warned in the Bundestag about a wave of insolvencies. The CDU politician urgently demanded a comprehensive overall concept for overcoming the crisis. At the same time, Haseloff questioned the debt brake in order to respond to calls.
Within the traffic light coalition in the federal government, there are differing views on whether the debt brake, which has been suspended in recent years due to the pandemic and is enshrined in the Basic Law, should be reinstated next year. It only allows the federal government to make new loans to a limited extent.