Germany's €200 billion investments plan: Berlin's European sins
How a €200 billion investment plan put Germany on an uneasy spot on the European stage.
What is this plan?
Last week, the German coalition government unveiled a massive investment plan to help companies and household face the energy crisis. The plan amounts at €200 billion euros, 5% of Germany’s GDP.
The plan includes a gas price brake and a cut in sales tax for fuel, from 19% to 7%. It includes measures to reduce Germany’s dependence on Russian fossil fuels by promoting the development of renewables and liquified gas terminals.
These measures would be financed with new borrowing, using a suspension of the constitutional limit on new debt of 0.35% of GDP, which was introduced amid the COVID crisis.
Chancellor Olaf Scholz said his “government will do everything it can” to bring prices down.
Why is it not accepted by the rest of the EU?
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