German industry criticizes help in domestic gas consumption

Key German economic agents received with some relief the announcement of the Schulz government’s measures to help pay the gas bill for individuals and industry this summer, although they did point out some undesirable effects, such as the increase in energy consumption it would bring. And with it, further increases in energy prices. Machine makers have asked Chancellor Schulz to do more to save energy and have expressed concern about the impact of a recently announced €200 billion aid program on inflation, according to the head of the German Federation of Mechanical Engineering. Carl Heusgen, who believes that “private debt will weigh heavily on households in the coming years, and therefore incentives to save energy, invest in new technologies and expand supply must continue.” Heusgen criticized the Gas and Heat expert panel’s proposal for a gas price cap, which Schultz described as a “very good basis,” raising “a big question mark over whether subsidies for 80% of private consumption still provide a sufficient incentive to save, nor It’s a secret that the Commission’s economists have advocated a much lower support rate.” On the other hand, Schulz has defended the proposal and trusts Germany’s export power to monetize this effort from state funds, even though he wants more facilities at the European level to negotiate trade agreements. The German chancellor had spoken in favor of “simplifying” the procedures for approving free trade agreements in the European Union to avoid lengthy procedures until the completion of their ratification. Schultz, who alluded to the status of the free trade treaty with Canada, which has yet to be judged by the German parliament, or the case of Belgium, which should bring it to its regional chambers, said Schultz. Schulz also stated that the current energy crisis can only be resolved on a global scale, and he has advanced in his quest to bring together world leaders to take joint measures to help lower energy prices from the German presidency of the G7. He argues that fossil fuel prices should be “reduced to a sustainable level”, but that this “is not something that can be achieved through unilateral action by Germany, or even by the entire European Union”. “We must organize cooperation with all consumers and this is true for Europe, but also for Japan and Korea, where prices in the market are much higher than they can afford,” he said. “That is why I have decided to make mutual accountability an issue in all international conversations, starting with today’s meeting within the framework of the Group of Seven.” “We need a negotiating process to bring prices back to a reasonable level,” he insisted, pointing to the fact that the G7 includes energy sources such as the United States and Canada, whose fossil fuels are now heavily sought after. The United States has increased shipments to Europe to help fill an energy gap left by Russia, but Germany accused Washington last week of charging large sums. “Some countries, even friends, achieve astronomical prices in some cases,” German Economy Minister Robert Habeck said last week. “The United States turned to us when oil prices rose dramatically, and as a result, national oil reserves in Europe were also exploited. I think That such solidarity would also be helpful for lowering gasoline prices now.Biden-Schultz’s criticism of Biden’s giant investment plan, for climate change, has also been criticized, because in his view it could lead to a “massive tariff war” by discriminating against foreign companies. The “Inflation Cut Act” program, launched by President Joe Biden, has allocated $370 billion to build wind power plants, solar panels and electric vehicles. Some provisions have caused a stir abroad, such as a tax deduction for purchasing an electric car produced entirely in the United States, with a battery produced as well. “We will talk more in-depth about the anti-inflation law with our American friends,” Schultz said during a meeting with the Engineering and Mechanics Union (VDMA) in Berlin, “Not every country’s politicians can say: ‘We put climate protection, ie Behold, dear industry, did you hear that we protect you from the competition of others? ‘…we are going to have a huge tariff war.’

See also  Charlie and the Tofu Factory

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button