BRUSSELS — Germany’s plan to help cover power-hungry firms’ electricity bills crosses a line for anyone who knows the EU’s rulebook on doling out state subsidies to industry.
But no one really believes that Brussels will stand up and prove to be a dealbreaker when facing the might of Berlin. The Germans tend to get their way in the end (even when they concede in an internal memo that they are probably breaking the law).
The scheme would essentially cap electricity prices at a bargain rate for Germany’s energy-intensive companies, with the government paying the rest. For Germany’s new government, that would come at a cost — roughly €10 billion by 2030. For struggling industries, however, it might be a lifesaver.
There’s just one hitch: EU rules technically prevent countries from handing industries cash like that. The idea is to stop richer countries like Germany from splashing government cash on companies that smaller and more cash-strapped nations will not be able to do, creating unfair distortions in the EU market.
