The German Government's Support Plan for Households and Businesses: How to Compensate for the Double Energy and Economic Shock?
In response to Russia's illegal attack on Ukraine, EU member states have issued a series of economic sanctions against Russia. This also includes moratoria on certain products, e.g., in the energy sector.
For its part, Russia has significantly reduced its energy supplies to the EU or, for some countries, stopped them entirely. The effects of this actual economic war are being felt by both sides. Germany, which was and still is to an above-average extent dependent on Russian energy supplies, especially natural gas, is under great pressure to react to the current uncertainty in energy supply and the enormous rise in energy prices. On the one hand, the government is working on rapid diversification in the energy supply and, on the other hand, on cushioning the effects of high energy prices on the population and the economy.
Sandra Parthie is the head of the Brussels Office of the German Economic Institute (Institut der deutschen Wirtschaft – IW).
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GERMAN: ,,Doppel-Wumms für eine doppelte politische Herausforderung“
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