“The German economy ministry plans to subsidise 80 per cent of the electricity cost for energy-intensive companies…
Under a long-awaited and highly contentious proposal published by Green economy minister Robert Habeck, a large part of German industry would be offered electricity at a subsidised price of €0.06 per kilowatt hour (kWh) until 2030. The plan, which would cost an estimated €25-30bn, is aimed at bolstering German manufacturers in sectors such as chemicals, steel, metal and glass, as well as encouraging European investment in industries seen as crucial to reducing EU dependence on China, such as the production of solar panels and semiconductors.”
Analyst Comment: Heavy industry is abandoning Europe very quickly. The decision to move forward with sanctions on Russia, shun energy independence, and abandon nuclear energy in Germany has led to pervasively high energy prices that many industrial operations cannot afford. Germany’s solution is to buy them off by subsidizing energy costs to the tune of 80%. This drastic cut shows their desperation to retain industrial operations. This move will lead to more popular unrest.