Status: 09/17/2022 04:14 a.m
In view of skyrocketing energy costs, the Association of Cities has called for a price brake. In addition, a protective shield must be put in place for the public utilities to avert payment difficulties.
The German Association of Towns and Municipalities is calling for a gas and electricity price brake to prevent an economic slump and mass unemployment.
Russia is waging an economic war against Germany, “that’s why we now need the bazooka in the form of a gas and electricity price brake,” said Gerd Landsberg, general manager of the municipal association of the “Neue Osnabrücker Zeitung”.
That would cost “many billions of euros,” but Landsberg believes the money would be well invested. “We have to prevent a recession, skyrocketing unemployment and the difficult situation of the people – because that is exactly what Russia wants,” emphasized Landsberg.
An end to the electricity and gas price explosion is not in sight. This will be a heavy burden for people, communities and the economy. Despite all efforts to save, there are many areas where the potential for this is low. Landsberg named hospitals, nursing homes, schools and kindergartens.
Shield against payment difficulties
The energy crisis is also affecting the municipal utilities, which is why municipalities are now calling for a rescue package. “We need a protective shield to avert payment difficulties,” says a statement by the association of municipal companies for the Bayern media group.
The Association of Towns and Municipalities explained that it is currently becoming apparent that the towns and municipalities “cannot save the municipal utilities on their own”. CDU Vice Andreas Jung told the Bayern media group that the municipal utilities are just as systemically important as the gas importer Uniper. The federal government should not unilaterally shift responsibility to the federal states and local authorities. “We now need a protective shield for the municipal utilities from liquidity support, a KfW guarantee program and reliable insolvency protection very quickly,” demanded Jung.