According to Volker Wieland, price caps and defensive shields do not solve the energy crisis, but contribute to a redistribution of consumption that feeds inflation. The measures go far beyond needy private households and endangered companies, he warns in a guest article in "Handelsblatt".
Due to the progressive tax rate, inflation leads to higher tax burdens on households and companies. A further tax increase, as recently proposed by the German Council of Economic Experts, reduces incentives to perform, weakens the competitiveness of German companies and dampens economic growth on the supply side.
What is needed instead, according to Wieland, is "a rapid, massive and increasingly climate-friendly expansion of the energy supply". He advocates a pragmatic approach that includes the expansion of coal-fired power generation and use of nuclear power over several years, the use of fracking in Germany and the rapid expansion of renewable energies. Otherwise, he sees a risk of energy-intensive industrial production moving out of Germany. However, this doesn't help the climate or the environment if environmental standards are looser elsewhere, Wieland warns.
Handelsblatt: "Viel Geld, wenig Energie"