German govt reaches deal on electricity price support for industry

The German government on Thursday announced an agreement on a package of measures to support industry in the face of high electricity prices over the next five years. Next year alone, the relief will amount to 12 billion euros ($12.83 billion), said German Chancellor Olaf Scholz in a statement.

The German government on Thursday announced an agreement on a package of measures to support industry in the face of high electricity prices over the next five years.

Next year alone, the relief will amount to 12 billion euros ($12.83 billion), said German Chancellor Olaf Scholz in a statement. Part of the plan is to massively reduce the electricity tax to the European minimum level, which would benefit all companies, not just those that have previously received compensation for peak load, according to the statement.

The existing compensation for 350 firms that are particularly exposed to international competition will not only be extended but also further expanded, it added. The agreement, first reported by the Handlesblatt newspaper, comes after months of wrangling within the coalition over how to ensure Germany's industry remains a competitive location in the face of high energy costs.

Finance Minister Christian Lindner said in the statement that all the measures were financed within the framework of Germany's constitutional debt brake. Shares in German chemicals companies rose on the announcement.