On Thursday, the German government said it would throw up to 200 billion euros for controlling sky-high gas and electricity prices. The federal government has authorised up to 200 billion euros from the Economic Stabilisation Fund. Christian Lindner has called it ‘energy war’ with Russia.

Economic Stabilisation Fund is a vehicle established originally to help the economy absorb the shock of the pandemic. It would use the available funds to compensate gas importers and suppliers for the losses they incur.
The government said that prices must come down, that is government’s conviction. The government is relinquishing its plans to impose a levy on customers’ bills that had provoked public anger at a time when inflation is at its highest level in 40 years.

Earlier, the Federal Statistics Office said that consumer prices were 10 per cent from a year earlier, as this year’s rise in energy prices took root ever more broadly in Europe’s largest economy. Germany’s measures are part of an increasing pattern in Europe that is seeing governments put the burden of this year’s energy price rise onto future taxpayers through a big surge in current borrowing.