• Wednesday, 03 July 2024

Energy crisis: Scholz says Germany ready for winter

Energy crisis: Scholz says Germany ready for winter
Berlin, 30 August 2022 (dpa/MIA) - Chancellor Olaf Scholz sought to reassure Germans that his government had prepared the country for a possible energy crunch this winter, despite missteps on the issue and tensions between his government's three coalition parties. Speaking during Cabinet talks in Meseberg to the north of Berlin, he cast aside concerns that Germany will face serious energy shortages in the wake of the reduction in Russian gas supplies. One could say "with all confidence" that Berlin has taken "the necessary action and will do more to be able to get through this winter and next winter," he said. Gas storage facilities were better filled than had been expected for this point in time, he said. The positive outlook came after weeks of sniping between Scholz's Social Democrats (SPD), the Greens and the liberal Free Democrats in particular over energy prices and the rising cost of living, with Economy Minister Robert Habeck from the Greens under extra pressure. He was seen to have suffered his first major personal setback as minister by supporting an extra levy on energy prices for consumers, arguing that it was necessary to stop large energy firms from going bust. He's since been forced to backtrack and say that not every firm should be able to benefit. The levy should not benefit "freeloaders" that don't financially need it, he told Deutschlandfunk radio on Tuesday. A revision of the directive may be difficult to achieve from a legal perspective. Leaders from the SPD and FDP have notably been less than supportive of Habeck, accusing him of not carrying out his job with enough diligence. The opposition conservative CDU are smelling blood, and are calling for Habeck to hand responsibility for energy policy over to the chancellor's office. Meanwhile, Scholz will have to find a common line on a new package of measures to help citizens cope with the higher cost of living. On Tuesday before the talks began he promised "the most bespoke, efficient and targeted package possible" - but mentioned no deadline. While his SPD and Greens want to help lower-income individuals and families and fund it by taxing rich firms, the FDP is absolutely against this.