Germany’s business model to be thrown out | MENAFN.COM

Friday, 07 October 2022 02:56 GMT

Germany’s business model to be thrown out


(MENAFN) German Economy and Climate Action Minister Robert Habeck rejected the nation’s whole business model on Monday, stating it depended on inexpensive energy imports from Russia that will never return.

Habeck’s remarks came in his statement of a special tax on natural gas, which will reallocate the effect of power lack between firms and the general population.

“Germany developed a business model that was largely based on dependence on cheap Russian gas,” Habeck informed journalists in Berlin, saying that this also meant reliance on an “enemy” of global law, “liberal democracy and its values.”

“This model has failed and it is not coming back,” he added.

As Russia has “arbitrarily” stopped gas supplies to the EU, Habeck said, Germany has to “rescue companies that have got into difficulties and have to bear that as a national economy,” calling it “bitter medicine” that has to be taken in the process.

“This tax is the fairest possible way to distribute and bear the additional costs that have accrued among the population. The alternative is not no tax. The alternative would have been the collapse of the German energy market and with it, large parts of the European energy market,” Habeck claimed.

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