Germany: Energy disaster causes economic emergency| MENAFN.COM

Monday, 06 February 2023 06:18 GMT

Germany: Energy disaster causes economic emergency


(MENAFN) North Rhine-Westphalia, Germany’s most populous state, has announced an economic emergency for 2022 and the next because of the growing energy disaster.

The move was essential for the state government – a coalition of the Christian Democrat Union and the Greens – to circumvent a rule to get extra loans.

The state will have to take new loans worth €5 billion (USD5.18 billion) to address what the administration has called an “exceptional emergency,” according to public broadcaster WDR.

The funds will have used for a rescue package for North Rhine-Westphalia, which is home to a mainly large figure of energy-intensive industries.

Only two other German states, Bremen and Mecklenburg-Western Pomerania, have so far taken a parallel move.

The North Rhine-Westphalia government originally wanted to use money left over in the COVID-19 bailout fund, but the strategy was deemed unconstitutional by the state’s audit office.

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