German Economy Minister Habeck presents details of industrial electricity price

Energy-intensive businesses in Germany are set to receive tens of billions of euros in state subsidies to reduce their electricity costs. The condition is that they commit to decarbonisation and remain in Germany. To push the proposal through, its author, German Economy Minister Robert Habeck, will have to find allies in the German government, which is so far divided over such a proposal.

Trade unions and business associations in Germany have been calling for an industrial electricity price for a long time. They argue that businesses could relocate production abroad because of relatively high electricity prices in Germany. The situation worsened further with the energy crisis triggered by Russia’s war in Ukraine. Germany responded with a support package, but now needs a long-term solution.

“Germany’s prosperity is also based on a strong industrial base, and we will need this strong base in the future as well. That is why we need to set the right course now. Energy-intensive industry in particular faces major challenges,” Habeck said.