Coalition overturns controversial gas levy - price brake coming

Berlin - A new "defense shield" of up to 200 billion euros is to support consumers and companies against the sharp rise in energy prices. The gas levy, which has been controversial until recently, is off the table - instead there is to be a gas price brake.

The German government was actually planning a levy of 2.4 cents per kilowatt hour for all gas consumers from October in order to support importers. This is now off the table.
The German government was actually planning a levy of 2.4 cents per kilowatt hour for all gas consumers from October in order to support importers. This is now off the table.  © Marijan Murat/dpa

"Prices must come down," said Federal Chancellor Olaf Scholz (64, SPD) at a press conference in Berlin on Thursday. The federal government will do everything it can to achieve this.

This should help to ensure that pensioners, families, trade businesses and industry can pay prices.

The plans put the government in a position to dispense with the planned gas levy, said Scholz. "It is no longer needed."

Scholz described the planned state support for the energy supply and the planned price brakes as a "double whammy".

He recalled his comments on previous state aid during the coronavirus crisis , saying that the aim was to get out of the crisis "with a bang".

Reduce prices quickly

From left: Robert Habeck (53, Greens, l-r), Olaf Scholz (64, SPD) and Christian Lindner (43, FDP) presented the German government's plans for energy supply and gas price caps.
From left: Robert Habeck (53, Greens, l-r), Olaf Scholz (64, SPD) and Christian Lindner (43, FDP) presented the German government's plans for energy supply and gas price caps.  © Kay Nietfeld/dpa

"You could say this is a double whammy," said Scholz. The aim is to reduce energy prices quickly and in a way that can be quickly determined by everyone.

The Chancellor noted that Russia was using its energy supplies as a weapon. At the latest since the damage to the pipelines in the Baltic Sea, it could therefore be said: "Gas will no longer be supplied from Russia for the foreseeable future."

Regarding German support for Ukraine , which has been attacked by Russia, Scholz said: "We will continue our solidarity."

But Germany can also managethe crisis in such a way that it remains manageable for its citizens.