Chancellor Olaf Scholz’s cabinet ended a two-day retreat without clear steps to control surging energy costs, losing precious time as Russia escalates the crisis.
(Bloomberg) — Chancellor Olaf Scholz’s cabinet ended a two-day retreat without clear steps to control surging energy costs, losing precious time as Russia escalates the crisis.
Hours after Gazprom PJSC again halted the key Nord Stream gas pipeline for maintenance, Scholz’s three-party coalition asked for more time to finalize initiatives to ease pressure on consumers and businesses in Europe’s largest economy.
“It’s not only about the question of energy security, but also about prices,” Scholz said after the gathering in Meseberg north of Berlin. The goal is “to make sure that the prices don’t shoot through the roof.”
Germany faces an unprecedented energy squeeze as Russia clamps down on deliveries in retaliation for sanctions related to its invasion of Ukraine. The government is wrangling over a multi-billion-euro relief package, as concerns mount over the risks of blackouts, rationing and a severe recession if Russia halts supplies.
Read more: Europe Braces for Rationing Risks in Russian Gas Showdown
Finance Minister Christian Lindner said the government has room of a single-digit billion-euro amount this year and more than 10 billion euros ($10 billion) is available together with Germany’s 16 states in 2023.
Scholz’s coalition government has already implemented two relief packages with measures worth more than 30 billion euros this year.
Coalition tensions were high heading into the Meseberg meeting amid sniping over a bungled effort to pass on higher costs to consumers. Economy Minister Robert Habeck has vowed to close loopholes in a planned gas levy to ensure only companies impacted by Russia’s energy squeeze can benefit from the funds.
The coalition parties, which consist of Scholz’s Social Democrats, Habeck’s Greens and Lindner’s Free Democrats, plan to convene over the weekend if policy proposals advance enough before then.
“It’s about putting together a very carefully, very precise, very tailored relief package” for companies and consumers, Scholz said. “We will conclude the works soon.”
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