Germany

Germany's gas price brake will cover only 80% of normal household usage to encourage consumers to save energy and stave off a potential shortage, ...

Germany is in an "extremely tense situation" with regards to energy supply, Habeck said. Register now for FREE unlimited access to Reuters.com

Under the new plan, Germany will introduce an emergency price brake on gas and electricity prices and also scrap a previously planned gas levy on consumers to ...

[Join the discussion](#join-discussion) The gas levy, which was slated to come into effect from Saturday and remain in place until April 2024, was intended to help utilities cover the cost of replacing Russian supply. “We are still in this emergency.

Germany is putting up a "defensive umbrella" of up to 200 billion euros ($196 billion) to stabilise the country's economy during the energy crisis, ...

[ Business Standard App ](https://www.business-standard.com/apps) for latest [Business News](https://www.business-standard.com/) and [ Market News ](https://www.business-standard.com/markets). (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.) Electricity and gas prices are to be capped, to ease the burden on consumers and the [Germany](/topic/germany) has actively sought new trade partners and extended coal and nuclear power generation since the start of the Russia-Ukraine conflict. [Germany](/topic/germany) is also reacting to the changed gas supply situation with Russia, after leaks in the Nord Stream 1 and 2 pipelines led to an indefinite hiatus in flow. [What are the Nord Stream 1 & 2 pipelines?](/podcast/current-affairs/what-are-the-nord-stream-1-2-pipelines-122090600035_1.html) [Nord Buds review: OnePlus has got the formula right for budget earphones](/article/technology/nord-buds-review-oneplus-has-got-the-formula-right-for-budget-earphones-122051900525_1.html) [Nord CE 2 Lite 5G review: A bridge between the old and new world of OnePlus](/article/technology/nord-ce-2-lite-5g-review-a-bridge-between-the-old-and-new-world-of-oneplus-122051900486_1.html) [Serviced turbine for Nord Stream 1 can be delivered at any time: Scholz](/article/international/serviced-turbine-for-nord-stream-1-can-be-delivered-at-any-time-scholz-122080400340_1.html) [OnePlus Nord CE 2 Lite 5G with Qualcomm SD 695, 5000mAh battery launched](/article/technology/oneplus-nord-ce-2-lite-5g-with-qualcomm-sd-695-5000mah-battery-launched-122042801177_1.html) [Germany](/topic/germany) is putting up a "defensive umbrella" of up to 200 billion euros ($196 billion) to stabilise the country's [economy](/category/international-news-economy-1160102.htm) during the [energy](/topic/energy) crisis, Chancellor Olaf Scholz announced.

To shield consumers from rising energy costs, the German government has announced it will ditch plans for a gas levy and spend billions on a gas price cap.

The money for the cap will come from the federal government’s economic stabilising fund, which was set up in 2020 to help support businesses during the [coronavirus pandemic](https://www.iamexpat.de/expat-info/coronavirus-covid-19-germany). On Wednesday, responding to the spiralling electricity and gas prices that are redoubling pressure on consumers, [Germany’s 16 federal states](https://www.iamexpat.de/lifestyle/german-federal-states) had urged the government to shelve plans for the levy and instead introduce a price cap. [tested positive for COVID](https://www.iamexpat.de/expat-info/german-expat-news/german-chancellor-olaf-scholz-tests-positive-covid). Exactly how the gas price cap will be implemented is as yet unclear. This would see companies profiting during the current crisis required to hand over a portion of their profits if they do not generate power. For them to come down, we will need a big defence shield.” He explained that the new 200-billion-euro relief package would include a gas price cap and a windfall tax on the huge profits being made by some [energy companies](https://www.iamexpat.de/housing/german-housing-market/home-utilities/german-energy-suppliers-electricity-gas).

Germany's move to cut tax on gas sales is designed to send a message to Russia about Berlin's determination not to capitulate in an energy war, ...

But after intense negotiations there was no agreement on a gas price cap, which several member states including Germany fear could push up demand and divert gas ...

BERLIN – Germany's chancellor on Thursday announced plans for a €200 billion ($196 billion) fund to protect consumers and companies from high energy costs.

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Berlin fears that a bloc-wide price limit on gas price imports would have a negative impact on supplies.

"We do not support an absolute maximum limit — in other words, a rigid price cap — because there is a risk that we will then no longer be able to buy enough gas on the world market at this price," Ungrad said. That led to accusations that Berlin was distorting competition across Europe because not all EU countries could afford such generosity. “The philosophy is very much different from COVID. Berlin's cautious view was underlined by Germany's Climate and Economy Minister Robert Habeck, in Brussels for an emergency summit of EU energy ministers. [Italy](https://www.politico.eu/?p=2216895), [Poland](https://www.politico.eu/?p=2217408) and [Greece](https://www.politico.eu/?p=2216481) have floated their own ideas for a price cap, which range from a rigid maximum price to a so-called dynamic cap, which would fix EU gas prices to one symbolic euro higher than the rival Asian bidding price, the Japan-Korea Marker. [Germany announced](https://www.politico.eu/article/germany-set-to-introduce-gas-price-cap/) on Thursday — under which the government sets a gas price and pays the difference to the actual market import price — and the proposal to introduce an EU-wide gas price cap, where the bloc would jointly agree to only pay a fixed price to international gas suppliers.