Germany to emerge from crisis stronger with new trade, energy policies

© Reuters. German Chancellor Olaf Scholz speaks during budget debate in the plenary hall of German lower house of parliament, or Bundestag, in Berlin, Germany November 23, 2022. REUTERS/Christian Mang

BERLIN (Reuters) – Germany is strong enough to weather the crisis caused by Russia’s invasion of Ukraine and emerge stronger from it thanks a new approach to energy, defence and trade policy in Europe’s biggest economy, Chancellor Olaf Scholz said on Wednesday.

“We are doing away with the failings of an energy and trade policy that has led us into one-sided dependence on Russia and China, in particular,” Scholz told the Bundestag lower house of parliament, adding carrying on as before was not an option.

“Germany has the strength to master the crisis and emerge stronger from it,” the Social Democrat chancellor said, adding his government would do more than stick to the status quo.

Since Moscow’s invasion of Ukraine, Germans have faced soaring energy prices due to disruption to supplies from Russia.

The government will not be able to completely stop a surge in energy prices through subsidies but can reduce them to a bearable level, Scholz said.

Caps on electricity and gas prices to be introduced by Berlin next year will bring energy costs to a level experts did not expect to see before 2024, he added.

“Then we will have more liquefied gas terminals on the grid, and the accelerated expansion of renewable energies will also have an even greater impact,” Scholz said.

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By Reuters