By Geoffrey Smith
Investing.com -- The German government said it will throw up to 200 billion euros at bringing down sky-high gas and electricity prices, its latest tactic in what Finance Minister Christian Lindner called an "energy war" with Russia.
The federal government has authorized up to 200 billion euros in borrowing by the Economic Stabilization Fund, a vehicle set up originally to help the economy absorb the shock of the coronavirus pandemic. It will use the available funds, among other things, to compensate gas importers and suppliers for the losses they incur in being unable to pass on the price of gas that they buy internationally on to their domestic consumers.
"Germany is showing its financial power in an energy war," Lindner said in a joint press conference with Chancellor Olaf Scholz and Economy Minister Robert Habeck.