Energy subsidies are extremely expensive for economy in Germ...| MENAFN.COM

Monday, 06 February 2023 06:38 GMT

Energy subsidies are extremely expensive for economy in German


(MENAFN) A document seen by Reuters reveals that by the end of May, the federal government would have spent over euro16.6 billion (USD18 billion) on a financial aid program intended to assist German firms and people in coping with the energy crisis.

According to a letter from Finance State Secretary Florian Toncar to the parliament's budget committee, Berlin expects to spend approximately euro14.5 billion (USD15.75 billion) to set an electricity price cap and an additional euro2.14 billion (USD2.33 billion) to subsidize transmission network costs over the next two months.

The federal government is going to provide all of the funding for the power price cap, which is anticipated to alleviate customers of the burden of rapidly rising costs. The measure's price tag is anticipated to be far higher than the euro16.6 billion (USD18 billion) Berlin is going to spend through May. It is scheduled to expire in April 2024. The spending proposal is anticipated to be approved on Wednesday by the budget committee of the German parliament.

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