German Chancellor: Heating price rise social bomb

German Chancellor Olaf Scholz expressed concern about rising energy prices in an interview on July 3, bild reported, calling the rise in heating prices a "social bomb".

A screenshot of the Bild report

Bild reported that Scholz expressed concern about rising energy prices in an interview with German broadcaster ARD, noting that if heating prices suddenly rose by a few hundred euros, an amount that many people could afford, it would become a "social bomb."

The German government is struggling to keep energy supplies stable amid high inflation hopes to start discussing further relief measures Monday local time.

In an interview, Mr. Scholz said he was' very concerned 'about the impact of higher energy prices. "Next year is going to be a huge challenge," he said, because almost all data show that the energy subsidies already decided could offset 90 per cent of consumer price rises for low - middle-income households this year.

A meeting between the chancellery, trade unions employers will take place on July 4. They have been talking for days about employers offering employees a one-time tax-free allowance.

"No one is suggesting increasing real wages, but the question is how do we find solutions together to deal with rising prices," Scholz said.

"We are working with the company to see what can be done," Scholz said of the struggling German energy giant Uniper, a huge importer of Russian gas to the country, according to TASS.

At the same time, Mr. Scholz stressed that inflation is now a permanent problem.

When asked if he could feel the impact of inflation on his life, Scholz said he bought groceries "just yesterday" could name the correct prices for a number of different items, Reuters reported.

German consumers will be shocked by future increases in gas prices, which could "triple as a result of a reduction in deliveries through the Nord Stream pipeline," Klaus Muller, head of Germany's Federal Network Agency, said on Saturday (July 2), according to TASS.

Russia's Nord Stream pipeline is likely to see a 40% drop in gas deliveries to 1.3 billion cubic meters in July due to the closure of the pipeline for scheduled maintenance, According to Vygon Consulting consultant Vladimir Timonin, Sputnik news agency reported July 2.

In mid-June, Gazprom reduced nord Stream's supply of gas. Gazprom said the delay was caused by delays in the return of turbines sent by Germany's Siemens for inspection due to sanctions imposed by Canada on Gazprom.

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Source: Guanchan.com