Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Germany bails out Uniper, vowing ‘whatever it takes’ to avert energy crisis

Germany bails out Uniper, vowing ‘whatever it takes’ to avert energy crisis

Chancellor says ‘we will be very stable as a country’ in facing challenges caused by reduced Russian gas deliveries.

Germany will bail out gas importer Uniper, Chancellor Olaf Scholz said Friday, promising to do "what is necessary and as long as it is necessary" to help keep the country afloat amid fears of a Russia-driven energy crisis.

Speaking to reporters in Berlin, Scholz — who interrupted his summer holidays in the Bavarian Alps for the announcement — said his government would acquire 30 percent of Uniper, Germany's biggest gas importer, as well as provide €7.7 billion in government support and expand a credit line from the state-run KfW investment bank from €2 billion to €9 billion.

The chancellor also announced "further relief" measures "on a permanent basis" to shield citizens from increasing energy prices caused by Russia’s war on Ukraine. The move contravenes signals earlier this week from the government's finance minister, who insisted that strict fiscal planning left little wiggle room for further support packages for citizens.
"You never walk alone," Scholz

said in English, then continued in German: "We will do what is necessary, and as long as it is necessary, and we will be very stable as a country in facing the challenges on the energy markets amid the Russian war of aggression against Ukraine."

The chancellor's remarks were a clear reference to the famous "whatever it takes" slogan from Mario Draghi, the outgoing Italian prime minister, who made his pledge almost exactly 10 years ago as head of the European Central Bank, trying to reassure those concerned about Europe's markets amid the financial crisis.

"I think Draghi's words were very clever at the time, and they also contributed to the fact that many people understood that these are difficult times but that they can rely on those who have responsibility to do what is necessary," Scholz said on Friday.

"And that is exactly how it is now," he added, without providing further specifics on support measures for citizens, only indicating that those receiving unemployment support would get additional payments.


Backtracking on debt reduction targets?


Asked whether his finance minister, Christian Lindner, was on board with the spending plans, Scholz said it had been "a joint decision of the government, on which I have full agreement with the minister of economy [Robert Habeck] and the minister of finance."

Lindner's fiscally conservative Free Democratic Party (FDP) had previously pledged to reapply Germany's constitutionally enshrined "debt brake" as of next year — a promise that seems increasingly far-fetched. However, officials in Berlin insisted on Friday that, at least according to the current plans, Germany could still comply with its debt rules despite vows of further financial aid.

The chancellor left no doubt that Russia was to blame for the increased gas prices and the resulting energy crisis, stressing that "the arguments put forward" by Russian energy provider Gazprom for justifying critical reductions in gas supplies to the EU, such as issues with the maintenance of a turbine, "are not true."

Last week, Scholz accused Russia of using gas deliveries as a "weapon."

Gazprom on Thursday resumed only partial delivery of gas supplies to Germany following a 10-day-maintenance of the original Nord Stream pipeline, which prompted Habeck, the vice chancellor, to announce a series of measures aimed at boosting energy security while also accusing Russia of "using its power to blackmail Europe and Germany.”

Scholz stressed Friday that the Uniper bailout was necessary because the energy firm "is of paramount importance for the economic development of our country."

Uniper, which used to receive most of its gas imports from Russia, had to compensate for the reduced deliveries from Moscow by making expensive last-minute purchases on the global market. The practice plunged the country into serious financial distress as German consumer protection laws banned it from passing on most of the increased energy costs to consumers.

However, Scholz said energy costs will rise in October as the government introduces a special levy to share the burden of higher gas prices more evenly between companies and consumers. Scholz indicated that a four-person household should expect annual energy price increases of €200 to €300.

Yet he did not rule out more pessimistic scenarios.

"We believe that we can get through" the coming winter, he said. "Nevertheless, we are always re-examining all the possibilities. You know that very hard worst-case scenario calculations have been commissioned. We are looking at them and if there is anything to conclude from them, we will also be looking at these conclusions."

Scholz also urged other EU countries to demonstrate solidarity with one another when it comes to reducing gas consumption.

"Solidarity in Europe applies to all member states in an unconditional manner," he said.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Trump Announces Coca-Cola to Shift to Cane Sugar in U.S. Production
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
Zelensky Reshuffles Cabinet to Win Support at Home and in Washington
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Church of England Removes 1991 Sexuality Guidelines from Clergy Selection
Superman Franchise Achieves Success with Latest Release
Hungary's Viktor Orban Rejects Agreements on Illegal Migration
Air India Pilot’s Mental Health Records Under Scrutiny
Jamie Dimon Warns Europe Is Losing Global Competitiveness and Flags Market Complacency
Moonshot AI Unveils Kimi K2: A New Open-Source AI Model
Martha Wells Says Humanity Still Far from True Artificial Intelligence
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
EU Delays Retaliatory Tariffs Amid New U.S. Threats on Imports
Trump Proposes Supplying Arms to Ukraine Through NATO Allies
US Opens First Rare Earth Mine in Over 70 Years in Wyoming
Bitcoin Reaches New Milestone of $116,000
Severe Heatwave Claims 2,300 Lives Across Europe
Declining Beer Consumption Signals Cultural Shift in Germany
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Massive Anti-Government Protests Erupt in Belgrade
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Hungary's Prime Minister Criticizes NATO's Role in Ukraine
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Hungarian Scientist to Conduct 30 Research Experiments on the International Space Station
NATO Members Agree to 5% Defense Spending Target by 2035
NATO Leaders Endorse Plan for Increased Defence Spending
×