Bundestag suspends debt brake and increases CO2 price - financial expert explains the effects

Bundestag suspends debt brake and increases CO2 price - financial expert explains the effects

According to a report by www.mittelbayerische.de, the Bundestag has again suspended the debt brake for this year due to the Federal Constitutional Court's budget ruling. In addition, the CO2 price for fuel, gas and heating oil was increased.

The suspension of the debt brake due to the massive increase in energy prices as a result of the war in Ukraine and the flood disaster in the Ahr Valley means that almost 45 billion euros in energy and flood aid will be transferred to the regular budget. At the same time, the Bundestag decided to increase the CO2 price from 30 euros to 45 euros per ton of CO2 emitted from January.

These political decisions have a direct impact on the market and the financial industry. The increase in the CO2 price is expected to lead to rising costs, particularly for consumers in the areas of fuel, gas and heating oil. According to ADAC, a liter of gasoline could become more expensive by around 4.3 cents, diesel by around 4.7 cents, gas by 0.39 cents per kilowatt hour and heating oil by 4.8 cents per liter. A model family with a heating requirement of 20,000 kilowatt hours could have annual additional costs of 78 euros for gas and 96 euros for oil heating.

Furthermore, the income from the CO2 price flows into the climate and transformation fund, from which climate protection projects are financed. This could have an impact on investments and subsidies in the areas of renewable energy and environmental protection.

Overall, it shows that political decisions such as suspending the debt brake and increasing the CO2 price have a direct financial impact on the market and consumers. Companies and consumers must prepare for rising costs and possible changes in support programs and investments.