Germany's Coalition Proposes Measures to Ease Energy Price Impact

A working group within Germany's ruling coalition has proposed measures such as a windfall tax and price caps to mitigate energy price hikes linked to the Iran war. Ideas include reducing electricity costs and reactivating coal power. The Strait of Hormuz blockade continues to fuel price concerns.

A working group within Germany's ruling coalition has urged the government to implement measures like a windfall tax and price caps to shield citizens from escalating energy costs caused by the Iran war, lawmakers reported on Friday.

Conservative and centre-left lawmakers also recommended cutting household electricity costs, slashing energy taxes, and restarting coal power plants. Armand Zorn of the Social Democrats noted the issue lies with pricing, not supply.

The proposed measures are in response to the ongoing conflict's potential to persist and the prolonged closure of the Strait of Hormuz, through which 20% of the world's oil and gas transit. The blockade has heightened energy prices and destabilized financial markets.

(With inputs from agencies.)