ICYMI – Economic disaster has come to Germany as a result of massive investments in green energy.
The Wall Street Journal shared that Germany stated its intention to amend its 1970s legislation to send taxpayer funding to energy companies in an effort to prepare for a potential upcoming recession.
Reuters reported the breakdown occurred soon after Germany revealed its intention to spend $220 billion to convert all of its energy needs to renewable sources.
The fund for Germany’s energy plan was an industrial transformation between now and the year 2026, which included climate protection, hydrogen technology and expansion of the electric vehicle charging network. “200 billion euros in funding for the transformation of the economy, society and the state,” German finance minister Christian Lindner stated.
Unfortunately, a German power business requested state assistance recently in reaction to a bailout because of a shortage of Russian supply.
Business Insider reported:
Russia reduced natural gas exports to Germany via the Nord Stream 1 pipeline by 60% last month. Russian natural gas supplies account for 35% of the economy of Germany. Germany’s Vice-Chancellor Robert Habeck, who was quoted in an Associated Press piece, there are concerns that the situation would worsen if the pipeline is expected to be down for repair for ten days in July. The legislation that the German government has developed, allows acquiring interests in businesses that are being crippled by the skyrocketing price of imported gas.
The goal of the measure, if approved, would be to protect the main supplier of Russian gas to Germany, Uniper.
Additionally, the law would allow importers to avoid insolvency by passing on to their customers the higher costs of gas they buy on spot markets.
The new “price adjustment” mechanism in the updated law is intended to “keep supply chains as long as feasible and prevent cascade consequence.” Put simply, businesses would be given permission to tax their gas consumers to pass along the higher expenses connected with purchasing gas on spot markets.
Watch it here: Youtube/DW News
Sources: Dailycaller, Reuters, Wsj, Bloomberg, BusinessInsider
