Veronika Grimm’s economics takes a stand in the face of the energy crisis Speed limit before. “That wouldn’t be any harm – maybe even a smart signal so that people take the situation seriously,” Grimm told the newspaper Rhenish Post. Many countries in the Global South have already implemented drastic measures such as a home office requirement and restrictions on vehicle use. “The more we consume, the worse these countries will ultimately be hit,” warned Grimm.
Of other measures discussed in Germany the economist doesn’t think much of it: “The government must allow prices to take effect so that energy demand falls. Fuel discounts and Price cap They distort prices, they are the wrong approach.” Grimm also “doesn’t think anything” of an excess profits tax.
She called the new rule, according to which fuel prices at gas stations can only be increased once a day at twelve noon, “probably the least of the evils.” People expected something to be done, “so you do something.” Grimm sits as a so-called economics as one of five economists in the Advisory Council to assess overall economic development.
Meanwhile, Finance Minister Lars Klingbeil’s chief economic advisor, economics professor Jens Südekum, has confirmed that the government is working on an excess profits tax due to the current economic situation and the consequences of the Iran war. With an excess profits tax, profits that are above the normal range are skimmed off. This is intended to prevent individual sectors from benefiting excessively from crises. Südekum told the portal The PioneerHowever, he rejects a “hard price cap” at the pump because it is “risky because it can lead to bottlenecks. There is a risk that the regulated price will be too far below the market price.”
Diesel price reaches record high
On a nationwide daily average, a liter cost 2.327 euros on Wednesday, exceeding the old record from March 2022 by 0.6 cents, according to ADAC data. E10 premium gasoline also continued to rise in price: according to ADAC, the nationwide average price was 2.129 euros per liter, a new annual high.
The US and Israel carried out joint airstrikes on February 28th Iran started. Since then, Iran has been attacking Israel as well as several Gulf states and US facilities in the Gulf region with missiles and drones. In addition, Iran keeps the Strait of Hormuz largely blocked – around a fifth of the world’s oil and liquid gas transport normally passes through the strategically important strait. Since then, crude oil prices, among other things, have risen sharply.