New demands from the federal government endanger agreement on the climate package

Shortly before the decisive meeting of the environment ministers on the EU climate package, the federal government is demanding a drastic cut in the climate social fund. That could jeopardize agreement on the overall package.

NAfter Berlin’s change of course in the debate about the end of combustion engines in 2035, the federal government is now causing dissatisfaction in Brussels with its demand for a drastic reduction in the climate social fund. EU diplomats warn that the demand made by EU environment ministers this Tuesday in Luxembourg a few days before the desired agreement calls into question the “Fit for 55” climate package. There is a great danger that the Eastern Europeans would react to this and withdraw support for the heart of the package, the expansion of emissions trading to buildings and transport. “I can’t seriously imagine that the federal government wants to take responsibility for this,” warned Peter Liese, the CDU MP who is responsible for emissions trading in the European Parliament.

With the climate social fund, the EU Commission wants to break the resistance from Eastern Europe and other countries to the planned expansion of emissions trading. She wants to redistribute 25 percent of its income in the EU to cushion the consequences of higher heating and fuel costs for socially disadvantaged households. From 2025 to 2032, 72 billion euros should come together for this. According to several EU diplomats, Berlin made it clear early on that the volume of the fund was too high. It is also supported by states such as Austria, Sweden, Finland and Austria.