German energy policy: A return to the market and competition is urgently needed

German energy policy: A return to the market and competition is urgently needed

According to a report from www.merkur.de, Prof. Volker Wieland warns of the effects of German economic policy. The planned introduction of an industrial electricity price after the heat pump transition could represent another billion-dollar grave. The closure of nuclear power plants and the ban on the development of German shale gas deposits have led to an energy crisis. These measures lead to a shortage of electricity and rising energy costs, prompting industries to relocate production abroad. A policy that relies on bans and subsidies is not effective. The expert calls for a pragmatic energy policy and a European-oriented climate policy in order to reduce greenhouse gas emissions cost-effectively and strengthen Germany as a location.

The introduction of an industrial electricity price could lead to a significant burden on the market and the financial sector. Rising energy costs would reduce companies' profitability, which could lead to a decline in investment volumes and the migration of industry abroad. In addition, higher debts or taxes on companies and households could affect economic development. The lack of infrastructure for renewable energies and green hydrogen could lead to further bottlenecks and endanger Germany's competitiveness.

In order to mitigate the consequences of energy policy, Prof. Wieland advocates a pragmatic energy policy that expands the energy supply and a European-oriented climate policy that caps greenhouse gas emissions across Europe. This would help ensure that emissions are saved where it is most cost-effective, instead of pursuing small-scale German sector targets that are made more expensive through bans and subsidies. A policy that uses the market and competition and creates a competitive tax framework is crucial to strengthening Germany as a business location.