In the Frankfurter Allgemeine Zeitung, the Professor of Energy Policy explains the Gas Commission proposal to provide direct financial support to industry and households instead of capping gas prices.
We cannot use more gas than is available, and Germany and its neighbours cannot increase gas imports further. With the winter ahead, the Gas Commission of the German government recommends directly supporting individuals financially and not setting a price cap on gas.
Hirth highlights that the problem with Germany subsidising gas is that it would mean buying away gas from neighbouring European Union member states that find themselves in similar situations. In addition to potentially setting off a subsidy race, he says this would essentially support President Putin’s ambitions of dividing and weakening the European Union.
Instead, Hirth suggests a distribution of gas within the economy based on need. He also recommends financial support to individuals and industry to ease the situation in the winter months without impacting EU solidarity in the current gas crisis.
The full article is available here. (In German)
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Lion Hirth, Professor of Energy Policy