Germany in ‘serious crisis’ – top politician – Analysis

Chancellor Olaf Scholz’s government is facing criticism from Markus Soeder, the prime minister of Bavaria, who claims that the government has led Germany into a serious national crisis. Soeder argues that the government’s budget emergency and lack of funding will burden ordinary Germans. The criticism comes as the federal government announces the lifting of energy-price controls by the end of the year, which were implemented in 2022 to protect households and businesses from rising gas and electricity prices due to Germany reducing energy imports from Russia. However, the plans had to be changed after the German Constitutional Court blocked the government’s attempt to reallocate funds from the Covid-19 pandemic fund. Soeder accuses the government of lacking a policy plan and being bankrupt. He specifically criticizes the government’s strategy of subsidizing electricity prices and calls for a different energy policy, including a reversal of the phaseout of nuclear power plants. The removal of energy price controls is predicted to create uncertainty and increase electricity prices for citizens and companies. Germany’s previous energy crisis, caused by the loss of Russian gas imports, weakened its economy and contributed to inflation. Germany experienced a technical recession in the first quarter of 2023 with little recovery since then.

Source: RT news: Germany in ‘serious crisis’ – top politician