Finance Minister Lindner announces an early end to the energy price brakes - the Greens and the SPD contradict this

Finance Minister Lindner announces an early end to the energy price brakes - the Greens and the SPD contradict this

When Finance Minister Lindner announced the early end of the energy price brakes at the end of the year, he apparently did not yet have the approval of his government partners. Green Party leader Lang and SPD General Secretary Kühnert do not see the expiry a few months earlier as a done deal. Green Party leader Ricarda Lang sees no agreement by the government on this issue despite Finance Minister Christian Lindner's announcement to end the energy price caps. It is currently only clear that the Economic Stabilization Fund (WSF) will be dissolved, the debt brake will remain suspended and the energy price brakes will be paid by the end of the year, Lang told the broadcasters RTL and ntv at the Green Party conference in Karlsruhe. How funding will continue from 2024 “is of course still being discussed within the government”. Of course, the government has already talked about energy price caps, but many questions remain unanswered at the moment. “In the end you have to look at the overall package and then see how we get through not only this year, but also the next few years,” Lang told the broadcasters.

SPD General Secretary Kevin Kühnert also told the “Kölnische Rundschau” that he had noted Lindner’s announcement “with astonishment”. “That may be his opinion – it is not a decision by the coalition.” Whether there will still be energy price brakes in 2024 must now be negotiated politically. “The SPD believes this is necessary.”

Lindner announced on Friday that the government would not pay out the billions in state aid through the electricity and gas price brakes as planned by the end of March 2024. They would be “finished at the end of the year,” he said on Deutschlandfunk. The federal government introduced the price brakes last year in order to cushion the sharp rise in energy prices as a result of Russia's war of aggression on Ukraine.

Financing was provided via the Economic Stabilization Fund (WSF), which is worth up to 200 billion euros. The Karlsruhe judges had declared such special funds inadmissible alongside the regular budget. The WSF is no longer available, said Lindner.

According to a report by www.n-tv.de Finance Minister Lindner's plans to end the energy price brakes early have been shaken by opposition from the Greens and SPD. The uncertainty about the continuation of the energy price caps from 2024 could lead to further uncertainty in the energy market and have a negative impact on consumers and companies. The withdrawal of the Economic Stabilization Fund (WSF) as a financing option for the price caps could lead to an increase in energy prices and production costs, which could ultimately contribute to higher inflation and economic instability. Political uncertainty and lack of unity in government could also affect consumer and investor confidence, which would negatively impact the market. It is therefore important that the government finds a clear and long-term solution for financing the energy price caps to ensure the stability of the energy market and the economy.