German Finance Minister and Vice Chancellor Lars Klingbeil on Saturday said government action was the best way to bring down soaring petrol and diesel prices, deepening a rift within the coalition over how to best tackle the current energy crisis.
The Iran war has severely disrupted global energy supplies, hitting Europe’s largest economy with higher costs for gas and oil at a time when it is already struggling with tepid growth and tariffs.
“Intervening in the market is actually the most effective approach. We see that in other European countries,” Klingbeil told Sueddeutsche Zeitung in an interview, putting him at odds with Economy Minister Katherina Reiche.
“And I think we should have that courage too.”
Klingbeil reiterated plans for a windfall tax on energy firms’ profits given elevated petrol prices, adding this would allow Germany to “skim off crisis profits and use them to provide real relief for citizens”.
This should be flanked by a reduction in energy taxes as well as price caps for petrol and diesel similar to other European countries.
“I can no longer explain to anyone why in Belgium, Luxembourg or Greece – none of which are communist countries – the government is capping prices, whilst here they are skyrocketing,” Klingbeil said. Reiche, of the Christian Democrats, on Friday branded Klingbeil’s proposals “expensive and ineffective”, adding coalition leaders would continue to negotiate possible solutions over the weekend.
(Reporting by Christoph Steitz; Editing by Chizu Nomiyama )