German Finance Minister Christian Lindner rejected Economy Minister Robert Habeck’s industrial electricity price plan Tuesday.
In a Handelsblatt guest post, he termed direct government aid to reform the business “economically unwise” and against market principles.
The economy ministry remained silent.
This week, the ministry planned to propose an industrial power price for fossil fuel transition.
Lindner said industrial power prices would affect taxpayers and other consumers.
“Increasing competitiveness for some would thus mean a loss of competitiveness for others,” Lindner stated, adding, “no leeway in the already strained budget for correspondingly high subsidies.”
Chancellor Olaf Scholz questions the plan.
“We will not be able to sustain subsidising everything that takes place in normal economic activity in the long run – nor should we get into the habit of doing so,” Scholz said late Monday.
Berlin capped electricity and gas rates last year to safeguard companies and consumers from rising energy costs. However, German firms think power prices are too high.
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