The European Commission “will be vigilant” about the impact on competition in the EU of the German plan to cap energy prices at 200 billion euros, Internal Market Commissioner Thierry Breton told AFP on Friday.
“I have taken note of the announcement of the German plan that we will have to look at in detail in the coming days,” he added.
Berlin’s initiative has drawn criticism from several European leaders, including Italian Prime Minister Mario Draghi, who fear distortions of competition between countries.
“The Commission will be vigilant about the impact of this initiative (from Berlin) on the conditions of fair competition in the internal market,” he said.
“For several weeks, even several months, I have been encouraging Member States to find all the means at their disposal to support their industries and businesses. But I am very keen that this exercise is done in great transparency, in consultation and in total European coherence,” said Breton.
Germany, which has budgetary leeway, “has decided to appeal massively to the market to get into debt again, very significantly: 100 billion euros for defense, 95 billion for energy, now, with this new plan, 200 billion,” he listed, recalling various announcements of the German government since the beginning of the war led by Russia in Ukraine.
“The question now is how to offer member states that do not have these margins of maneuver, the opportunity to support their businesses and industries, as was the case during the Covid crisis,” he said.
German Chancellor Olaf Scholz announced on Thursday the release of 200 billion euros to cap energy prices and relieve German businesses and households from inflation.
This lone stand by Berlin, at a time when Germany is also putting the brakes on a European mechanism to cap the price of EU gas imports, has annoyed several partners.
“Faced with the common threats of our time, we cannot divide ourselves according to the room for maneuver of our national budgets,” Mario Draghi said in a statement.
“The energy crisis requires a response from Europe (…) to avoid dangerous and unjustified distortions of the internal market,” continued Mr. Draghi, calling on Europeans to “show unity, determination and solidarity.
