Electricity and gas prices remain high: Agora sees extraordinary emergency situation” in 2024. Financial expert analyzes possible effects on debt brake.

Electricity and gas prices remain high: Agora sees extraordinary emergency situation” in 2024. Financial expert analyzes possible effects on debt brake.

According to a report by amp2.handelsblatt.com, the think tank Agora Energiewende continues to see an exceptional emergency situation due to the ongoing energy crisis. This could justify a suspension of the debt brake for 2024. The prices for electricity and gas remain at a very high level, which is putting a strain on the economy and causing discussions in politics. Last week, the Federal Constitutional Court also expressed doubts about the justification for an emergency situation.

Electricity and gas prices have doubled compared to pre-crisis levels and have become more volatile. An emergency situation may justify suspending the debt brake, allowing more debt to be taken on in the coming year to support the economy. This would be particularly important for the key industries in order to prevent a structural consolidation of the reduced production paths. There is also a need for action in the areas of climate protection, the resilience of supply chains and European climate policy. The energy price crisis is impacting the entire economy and requires extensive measures to support industry and curb energy prices.

It remains to be seen whether the federal government will declare the emergency situation for 2024 and what measures will be taken to stabilize the economy and reduce energy prices. The decision will also be influenced by the European Union's response and progress in climate policy. The coming months will be crucial to monitor the impact of the energy crisis on the financial sector and the market.