Germany Defends Energy Package in the Face of European Criticism

The 200 billion euro support plan released by Germany to protect its economy from the energy crisis is justified.

Share:

The 200 billion euro support plan released by Germany to protect its economy from the energy crisis, criticized by several European countries, is “justified”, said Chancellor Olaf Scholz Tuesday.

“The measures we are taking are (…) justified,” said the head of the German government at a press conference with his Dutch counterpart, Mark Rutte.

While some EU officials criticize it for going it alone, Berlin argues that these measures “are not isolated, and have been taken elsewhere,” Scholz said.

France and Spain have put in place measures to limit the impact of soaring energy costs on consumers, as Germany is about to do with an upcoming price cap.

The announcement last week of this new aid, valued at 200 billion euros, irritated its European partners.

Germany is being accused of double standards: pleading for austerity in Brussels while spending lavishly itself.

The amount and the uncoordinated nature of the initiative make some countries fear distortions of competition, because not all European states can release such a sum.

In addition to similar measures in other European countries, Berlin emphasizes that its plan will be spread over several years, which will prevent too many distortions.

“These measures will be intended to finance support measures in 2023 and 2024″, thus defended Tuesday Olaf Scholz.

The Chancellor also rejected the establishment of new common borrowing instruments at the European level to respond to the crisis, such as the post-Covid recovery plan of 2020.

This is what was suggested in an opinion piece on Monday by the European Commissioners for the Economy and the Internal Market, Paolo Gentiloni and Thierry Breton.

Mr. Scholz calls for the use of the money released in 2020, a large part of which has not yet been spent by the European states.

“We have a huge envelope of 750 billion euros, the vast majority of which has not yet been used, and which can be particularly effective at this time,” he said.

This European recovery plan, intended for “investments in the future”, was released thanks to the agreement of Germany, at the time governed by the conservative Angela Merkel, who finally rallied to the initiative.

The German Ministry of Economy plans to significantly expand aid aimed at reducing industrial electricity costs, increasing eligible companies from 350 to 2,200, at an estimated cost of €4bn ($4.7bn).
A major electricity blackout paralyzed large parts of the Czech Republic, interrupting transport and essential networks, raising immediate economic concerns, and highlighting the vulnerability of energy infrastructures to unforeseen technical incidents.
French greenhouse gas emissions are expected to rise by 0.2% in the first quarter of 2025, indicating a global slowdown in reductions forecast for the full year, according to Citepa, an independent organisation responsible for national monitoring.
The Republican budget bill passed by the U.S. Senate accelerates the phase-out of tax credits for renewable energies, favoring fossil fuels and raising economic concerns among solar and wind industry professionals.
Rapid growth in solar and wind capacities will lead to a significant rise in electricity curtailment in Brazil, as existing transmission infrastructure remains inadequate to handle this massive influx of energy, according to a recent study by consulting firm Wood Mackenzie.
In April 2025, fossil fuels represented 49.5% of South Korea's electricity mix, dropping below the symbolic threshold of 50% for the first time, primarily due to a historic decline in coal-generated electricity production.
The US Senate Finance Committee modifies the '45Z' tax credit to standardize the tax treatment of renewable fuels, thereby encouraging advanced biofuel production starting October 2025.
According to the 2025 report on global energy access, despite notable progress in renewable energy, insufficient targeted financing continues to hinder electricity and clean cooking access, particularly in sub-Saharan Africa.
While advanced economies maintain global energy leadership, China and the United States have significantly progressed in the security and sustainability of their energy systems, according to the World Economic Forum's annual report.
On the sidelines of the US–Africa summit in Luanda, Algiers and Luanda consolidate their energy collaboration to better exploit their oil, gas, and mining potential, targeting a common strategy in regional and international markets.
The UK's Climate Change Committee is urging the government to quickly reduce electricity costs to facilitate the adoption of heat pumps and electric vehicles, judged too slow to achieve the set climate targets.
The European Commission will extend until the end of 2030 an expanded state-aid framework, allowing capitals to fund low-carbon technologies and nuclear power to preserve competitiveness against China and the United States.
Japan's grid operator forecasts an energy shortfall of up to 89 GW by 2050 due to rising demand from semiconductor manufacturing, electric vehicles, and artificial intelligence technologies.
Energy-intensive European industries will be eligible for temporary state aid to mitigate high electricity prices, according to a new regulatory framework proposed by the European Commission under the "Clean Industrial Deal."
Mauritius seeks international investors to swiftly build a floating power plant of around 100 MW, aiming to secure the national energy supply by January 2026 and address current production shortfalls.
Madrid announces immediate energy storage measures while Lisbon secures its electrical grid, responding to the historic outage that affected the entire Iberian Peninsula in late April.
Indonesia has unveiled its new national energy plan, projecting an increase of 69.5 GW in electricity capacity over ten years, largely funded by independent producers, to address rapidly rising domestic demand.
French Minister Agnès Pannier-Runacher condemns the parliamentary moratorium on new renewable energy installations, warning of the potential loss of 150,000 industrial jobs and increased energy dependence on foreign countries.
The European battery regulation, fully effective from August 18, significantly alters industrial requirements related to electric cars and bicycles, imposing strict rules on recycling, supply chains, and transparency for companies.
The European Parliament calls on the Commission to strengthen energy infrastructure and accelerate the implementation of the Clean Industrial Deal to enhance the continent's energy flexibility and security amid increased market volatility.