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Habeck warns of permanent damage to the German economy
Political
14:4427 Sep, 2022

Habeck warns of permanent damage to the German economy

Economics Minister Robert Habeck (Greens) has warned of permanent damage to the German economy due to the energy price crisis. He spoke out in favor of extensive financial aid from the federal government. Habeck told the German Press Agency: "Sometimes it's just a smoldering fire, sometimes the hut is already burning. In any case, the sustainability of our economy is in danger, there is a risk of permanent damage. We now have to muster all the financial strength to bring the good substance of our economy over the crisis, to secure jobs and to protect the investment and future viability of our economy . "We must not waste any time here."
 
 
Chancellor Olaf Scholz (SPD) will meet with the heads of government of the federal states on Wednesday. Habeck had already announced plans to expand government aid programs for companies. But the question of financing remains open. Habeck brought a special fund into play. A special pot worth 100 billion euros had been decided for the Bundeswehr.
 
 
It is disputed in the coalition whether the debt brake anchored in the Basic Law will be observed again in the coming year. Finance Minister Christian Lindner (FDP) insists on this. The debt brake had been suspended due to the corona pandemic. It only allows the federal government to take out new loans to a limited extent. If the gas allocation is tipped is unclear where the money will come from to support gas importers. A gas price brake is also under discussion.
 
 
Family businesses are demanding noticeable relief. The companies should be able to produce at competitive prices in Germany, said Rainer Kirchdörfer, head of the Foundation for Family Businesses and Politics. “Companies are running out of time due to rising energy prices. The federal government should quickly put an effective brake on gas and electricity prices on the way.”
 
Source: dpa
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