Energy: Budget crisis: DIHK warns of burdens on the economy

Energy: Budget crisis: DIHK warns of burdens on the economy

The budget negotiations also involve a planned federal subsidy for transmission network fees. Many corporations suffer from high electricity prices. The DIHK warns.

The German Chamber of Commerce and Industry has warned of strains on the economy during the budget crisis. DIHK President Peter Adrian told the German Press Agency: “The federal government must create a balance when setting the course for the budget – between compliance with political commitments for individual industrial projects and the agreed relief for the broad spectrum of network fees and electricity tax. Both are to be secured of the entire industrial value chains.”

Concentrating on large projects would be a danger for many medium-sized industrial companies and also for social cohesion, said Adrian. “The increase in network fees at the turn of the year alone would cost a typical medium-sized company a six-figure amount if the promised subsidy does not come.”

Relief for industry and medium-sized businesses is questionable

The traffic light coalition is wrestling with how much money the federal government can spend on in the coming year. The Federal Constitutional Court had declared the reallocation of 60 billion euros in the 2021 budget to the climate and transformation fund to be null and void. The money was approved as a Corona loan, but was subsequently intended to be used for climate protection and the modernization of the economy.

The budget negotiations between the coalition leaders are also about a federal subsidy for transmission network fees of up to 5.5 billion euros, which is actually planned for next year – these fees are part of the electricity price. The subsidy should be financed from the Economic Stabilization Fund (WSF) – however, as a result of the budget ruling, the federal government must dissolve this special fund at the end of the year. The money for the subsidy would now have to come from the core budget.

Before the budget verdict, Chancellor Olaf Scholz (SPD), Finance Minister Christian Lindner (FDP) and Economics Minister Robert Habeck (Greens) put together a package to relieve the burden on industry and small and medium-sized businesses in view of the high electricity prices. Among other things, the electricity tax for all manufacturing companies is to be reduced to the minimum value permitted in the EU.

Around 350 companies that are particularly exposed to international competition and suffer from high electricity prices are to receive additional help. The existing so-called electricity price compensation is to be extended and expanded for five years.

Source: Stern

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