Germany’s Socialist/Green government adds more fuel to inflation…announcing it will boost the price of CO2 emissions by 10 euros a ton beginning in 2024!
High energy costs have led to runaway inflation in Germany. Source: www.statista.com/
According to Germany’s online Handelsblatt, the German government has moved to increase the price tom emit a ton of CO2 in 2024. The original plan was to increase the price by 5 euros a tonne, from 30 to 35 euros a ton, but now the government has decided to double that increase to 10 euros, meaning the price of emitting a ton of CO2 will be 40 euros.
That 33% increase will add to the heating and fueling bills for consumers, and further add upward pressure to the country’s already high inflation rate.
Germany’s economy is already among the weakest in the Euro Zone and high energy costs will make it all more painful for consumers. The higher price will go into effect on January 1st.
The impact of the higher price will hit the poor the hardest, who are already reeling from higher costs of living. The government is expected to take in an extra 2.3 billion euros in revenue and a total of 10.9 billion euros in 2024.
“We must act cautiously with regard to CO2 pricing, especially in view of the current weakness in growth,” said Germany’s Minister of Finance Christian Lindner.
The state says it will invest in climate-friendly projects, with billions earmarked for building renovations, industrial conversions and electric cars. For 2024, spending of 57.6 billion euros is planned, which is 21.6 billion euros more than in 2023.