According to the EU Commission, the measures planned by the federal government in the energy crisis are not targeted enough. On Tuesday, the EU Commission presented recommendations to the euro countries on how to plan their spending in 2023.
In particular, states should ensure that measures to support citizens are temporary and targeted at relieving households and small businesses, which are most affected by high energy costs and not all equally. In Germany this is only partly the case.
According to the Commission, targeted measures to combat high energy prices in Germany will account for 0.3 percent of gross domestic product (GDP) this year.
Untargeted measures, on the other hand, account for 0.8 percent of GDP. Next year, the difference is estimated to be even greater: untargeted measures account for 0.7 percent of GDP versus targeted measures with over 0.1 percent of GDP.
Overall, Germany will have too much growth in spending in 2023 despite the expected high inflation, it said.
In addition, the EU Commission spoke of imbalances in the German economy that would have to be checked – such as rising real estate prices and a falling current account surplus.
The EU Commission also announced tests for 16 other EU countries. The recommendations of the Brussels authority are now to be discussed by the EU states. (dpa)
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Source: Tagesspiegel
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