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Germany is discovering ways to fund multibilian-euros for energy-intensive companies as part of the pledge of Chancellor Frederick Merz to promote competition of heavy industries in the country.
This measure is part of efforts to reduce the cost of electricity for industrial groups, which is to revive the largest economy of Eurozone after the longest stagnation.
But due to lack of plan, the plan is at risk after the promise of cutting power tax for homes.
Financial concerns have created the first significant tension within the ruling coalition between Merz’s CDU, its sister -in -law CSU and social democrats.
Last week, CSU party leader Marcus Soder criticized Finance Minister and Vice Chancellor Lars Klingbeal, who is also the co-leader of SPD for not cutting power tax for consumers in his first budget. The cost of this remedy will be € 5.4bn annually.
Despite those budgetary concerns, the German economy minister Kaitharina Reach, according to people with knowledge of the scheme, wants to expand the number of German companies eligible for power value subsidy from 350 to 2,200.
He said that this remedy would fund half of the electricity bills of companies in three years and according to preliminary estimates, the state will have to spend about € 4BN.
The Ministry of Economics hopes that the scheme will comply with the new state aid structure of the European Union, Mentioned last monthHe said.
A former energy executive from CDU, Reach pressed Brussels To allow more and more state support for Germany’s heavy industries, arguing that the eurozone would benefit if its largest economy begins to grow again.
Germany has tolerated high energy costs due to its decision to shut down nuclear power and shut down cheap Russian gas after Ukraine’s full -scale invasion in 2022.
The Ministry of Economy said that the purpose of the scheme would be to provide “Swift and reliable” support for chemical, glass and plastic industries, which have “far -reaching impact on other areas through value chains”.
“We are developing a viable concept that we will coordinate within the government and closely monitor cooperation with the European Commission,” said this.
Last month, the Commission said that it would allow the member states to subsidize industrial companies as the cost of electricity to help them in decarbonies. This decision was seen by many people in Brussels, which was a way to help Merz fulfill their promise of their campaign.
But in the race for the post -election expenses, with another problem, the alliance of the merge has been sad: A. European Union’s fiscal rules potential violationsBerlin, which has loosened its constitutional lending limit to promote defense and infrastructure expenses, will present its expenditure plan this month for the next four years.
For a long time, the patron of fiscal discipline of the European Union, Germany now predicts that its federal deficit will be € 82bn this year, from € 33BN last year. According to the German Finance Ministry, it is expected to widen up to € 126BN by 2029.
The price of low power planned for industries has been investigated by the Finance Ministry so far, people familiar with the matter said. If adopted, the European Union Commission will have to formally approve state assistance.
Additional Reporting by Barbara Mons in Brussels
