Minister calls for extending energy subsidies in Germany through Easter

Germany's Economy Minister Robert Habeck on Thursday spoke out in favour of extending the country's system of electricity and gas price subsidies at least through Easter of next year, reported dpa.

The German government created the temporary energy subsidies, known in Germany as price brakes, after Russia's invasion of Ukraine sent energy prices spiralling upwards.

The subsidies, which partly offset high prices above certain thresholds for households as well as small- and medium-sized businesses, are currently scheduled to expire at the end of the year.

"The price brakes act like insurance against rising prices," Habeck told the Augsburger Allgemeine newspaper on Thursday.

"I'm advocating that we extend it again, until the end of winter,” said Habeck. He said the government has already discussed the possibility with the European Commission, which has been critical of national energy subsidy schemes.

Habeck said extending the subsidies now would protect Germans in case prices spike again.

Habeck noted that only about €18 billion ($20 billion) of the €200 billion made available have so far been spent on energy subsidies after electricity and gas markets stabilized.

The Green Party member said possible price increases are most likely in the winter, when many Germans turn to gas and electricity to heat their homes.

"The best case is that we extend them and don't need them," said Habeck.

Chancellor Olaf Scholz's Social Democrats voiced support for Habeck's proposal, while the opposition centre-right Christian Democrats were sceptical suggesting tax cuts instead.