In an interview which will air on Sunday, Deutschlandfunk radio station has said German Finance Minister Christian Lindner will announce that the German government will not extend the limits on electricity and gas prices as it had previously indicated, but rather will allow them to expire at the end of the year.
Reportedly he said, “As of December 31 of this year the Economic and Stabilization Fund will be closed. There will be no more payouts from this. The electricity and gas price brakes will also be terminated.”
In the interview Linder did not say if the government intended to supply energy support to needy families through the regular budget in 2024. The nation has been offering financial support to households and businesses in need ever since the government, in conjunction with the other governments of Europe chose to shy away from cheap Russian energy products following the onset of the war in Ukraine, sending the prices of energy products skyrocketing.
The decision comes on the heels of a call from the European Commission earlier this month demanding Berlin eliminate the prices caps as soon as would be feasible.
The decision also came just days after the Constitutional Court of Germany declared the federal government’s attempt to move €60 billion ($66 billion) in funds earmarked for programs related to the coronavirus pandemic to other projects, was unconstitutional and could not be done legally.
The so-called WSF fund was one of 29 non-budgeted institutions of its kind in the country, which combined hold a total of €870 billion.
The government had been using the funds as a kind of slush fund to supply funding to projects outside of regular governmental mechanisms. The ruling has since placed the funding for several projects in jeopardy, from modernizing the German economy to fighting climate change. Experts note that the top court’s decision may also affect the mechanisms of funding for future crises.