Robert Habeck, the economy minister, said his ministry recognized the angry response to the hike and would urgently review the aid package in an effort to prevent gas importers whose businesses have benefited from recent energy inflation from taking advantage of it. The conservative opposition CDU/CSU said on Friday it would fight to overturn the levy. As criticism of Habeck erupted from his coalition partners, the far-liberal FDP and the Social Democrats, there was even speculation that the row over the plan could lead to the collapse of the government. However, Hambeck stressed that a tax, to be implemented in October, was necessary to ensure Germany’s energy security and prevent the collapse of some companies, which faced higher costs of obtaining energy from other sources after Russia pressured deliveries of natural gas. . Hambeck admitted his policy was a “political problem,” adding that “it was certainly not morally right for companies that, to put it bluntly, have made a lot of money, can say … because of the relative decline in our income.” we will ask for help from the population and expect them to give us money”. But he told Die Welt in a later interview, in which he said he would “look more closely” at the policy, he worried there might be no legal way to circumvent the levy if powering Europe’s biggest economy in the critical winter months had to be secured. The revelation that of the 12 companies that had originally applied for around €34bn in aid, according to Germany’s gas market manager Trading Hub Europe, some had made billions of euros in profits due to energy inflation. One, which was only about 1.5% dependent on Russian gas, has sparked outrage across the political divide, including Habeck’s Green party. Under the policy, from October 1 until the end of March 2024, German consumers are expected to pay an extra 2.4¢ for every kilowatt-hour of gas they use. This would be on top of price rises, with experts currently saying energy bills could rise by up to seven times this coming winter. Chancellor Olaf Scholz previously argued that a cut in VAT on energy bills from 19% to 7% would ease the burden on households caused by rising energy costs and more offset the additional costs brought about by the gas levy. He said earlier this month: “The issue of justice is critical if the country is to remain united in this crisis.” Some experts agree to differ with Scholz’s calculation and argue that it is the principle of the levy that is its most damning feature: that even gas suppliers with no financial need can apply for aid at a time when many ordinary Germans as well as businesses face a very difficult period which is expected to extend until the spring of 2023. The government has already introduced a series of measures worth billions of euros to ease the rising cost of living and is expected to announce a new package of measures in the coming days. He has faced criticism for repeatedly rejecting the idea of imposing an additional tax on energy companies that have seen their profits soar since Russia invaded Ukraine. However, Christian Lindner, finance minister and head of the FDP, said while he thought the levy was acceptable in principle, he wanted to see corrections made. Archie Bland and Nimo Omer take you to the top stories and what they mean, free every weekday morning Privacy Notice: Newsletters may contain information about charities, online advertising and content sponsored by external parties. For more information, see our Privacy Policy. We use Google reCaptcha to protect our website and Google’s Privacy Policy and Terms of Service apply. “If there is a need to change something to make this medium more targeted so that it can benefit consumers, then we will not hesitate to make corrections,” he told German television. Saskia Esken, joint leader of the SPD, said it was a “travesty of justice”. It cannot be accepted that companies that are not facing financial difficulty should receive money from consumers, he said, calling the companies “freeloaders”. A far-left protest group has already said it plans demonstrations against the gas levy, while far-right groups have said Germany is facing a “Wutwinter” – or angry winter of street protests with the government at the center of their fury. On the list of companies that have applied for relief from the levy are two that have already received billions in government bailouts this summer. Uniper SE and Securing Energy for Europe GmbH, formerly known as Gazprom Germania GmbH, are between them claiming 92% of the available funds. RWE AG, which applied to receive aid, said it would drop its claim as it is not heavily dependent on Russian gas. Habeck urged others to do the same. Jens Spahn, head of the opposition CDU parliamentary group, said he believed the levy would lead to even higher gas prices. Under the levy rules, he said, “gas traders will get back 90% of their costs. This will encourage them to buy gas at any price, no matter how high, knowing that the losses will be evened out. This will make the price of natural gas even more expensive than it needs to be.”
