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Germany plans $194 bln economic defense shield

Reuters Videos
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2 個月前

STORY: Germany has a new “defensive shield” for its economy.

That’s the term for a package of measures set out Thursday (September 29) totalling around €200 billion, or about $194 billion.

Chancellor Olaf Scholz announced the plan:

“On a different occasion I once said the measures we were taking are a bang. Here you could say it’s a double bang. It’s meant as a contribution for energy prices to come down quickly so that everyone notices it and that no one needs to worry when they think about autumn and winter, about Christmas, about next year and about the bills.”

Europe’s biggest economy is preparing for a winter of possible energy shortages.

Among the measures is an emergency brake for gas and electricity prices.

Berlin will also scrap a previously planned gas levy on consumers.

To help keep the lights on, two nuclear power stations that were due to close will be allowed to keep operating until the spring.

Germany will finance the package with new borrowing, and has set aside previous limits on new debt.

Scholz says the country is well prepared:

“We have a powerful economy, we have stable public finances, also thanks to the very careful politics in recent years and the approach we are planning for coming years.”

The cost of gas has soared in Europe since Russia throttled supplies to the region.

That has already claimed corporate casualties, with Germany forced to nationalize gas importer Uniper.

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