BERLIN: Germany said on Tuesday it aimed to expand lending to energy firms at risk of being crushed by spiralling gas prices, the latest effort in Europe to rescue households and industry from an energy crisis sparked Russia's invasion of Ukraine.
The crisis is already weighing heavily on Europe's economy, even before the onset of winter when industrial users could face rationing if gas reserves prove inadequate. Industry sentiment in the bloc's economic powerhouse, Germany, has tumbled. The German cabinet is expected to approve draft legislation for the boosted credit funds on Wednesday.A draft of the Commission proposals, seen by Reuters, would impose a cap on the revenues non-gas fuelled generators can make from selling electricity, and force fossil fuel firms to share excess profits. Governments would be required to use the cash to help consumers and companies facing sky-high energy bills.
"The prospect of energy shortages in winter has made expectations even more negative for large parts of the German industry," said Achim Wambach, president of the ZEW economic research institute.
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