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EU ministers urge unity after Germany’s energy ‘bazooka’

EU finance ministers on Monday pleaded for unity after Germany announced a €200 billion plan to help German households and businesses pay for high energy prices, amid accusations that the EU's biggest economy was acting alone.

The European and German flags wave in the wind in front of the Reichstag in Berlin.
The European and German flags wave in the wind in front of the Reichstag in Berlin. Photo: picture alliance / dpa | Kay Nietfeld

Europe is struggling with historically high energy prices as it faces an early autumn cold snap and a coming winter almost certainly to be endured without crucial Russian gas supplies because of the war in Ukraine.

Many EU countries have announced national programmes to shield consumers from the high prices. But Germany went the furthest on Friday when it announced its mammoth plan, which will see help pouring to Germans for two years.

Arriving to talk with his eurozone counterparts, German Finance Minister Christian Lindner insisted the spending was “proportionate” to the size of Germany’s economy and said his goal was to use as little of the money as possible.

READ ALSO: Germany to spend €200 billion to cap soaring energy costs

But Germany’s largesse rankled several EU capitals, some of which feared their industries could take severe blows while Germany’s sits protected, deforming the EU’s single market.

Outgoing Italian prime minister Mario Draghi has slammed Berlin for its lack of solidarity and coordination with EU partners.

French Finance Minister Bruno Le Maire, without directly criticizing Berlin, called on partners to agree a common strategy against the price shock and for countries to refrain from going it alone.

“The more this strategy is coordinated, united, the better it is for all of us,” he said.

Risk to ‘European unity’

Others pointed to the unprecedented solidarity shown in the Covid-19 crisis in which the 27 EU nations, against all expectations, approved a jointly financed €750 billion recovery plan.

“Solidarity is not only on the German shoulders, I think this is something that we have to deliver at European level,” said EU economics affairs commissioner Paolo Gentiloni.

“We have very good examples from the previous crisis on how solidarity can react to a crisis and also reassure financial markets. I think that this is our goal,” he said.

While a Covid-style recovery plan is not in the cards for now, Le Maire said €200 billion in loans and €20 billion in aid should be devoted to REPowerEU, a programme to help countries break their dependence on Russian gas.

READ ALSO: Will Germany set a gas price cap – and how would it work?

Bruegel, a highly influential think tank in Brussels, called the German plan a spending “bazooka” that many EU countries were unable to match, creating a potential source of animosity.

“If the German gas price brake gives German business a much better chance to survive the crisis than, say, Italian business, economic divergences in the EU could be deepened, and European unity on Russia undermined,” it said in a blog.

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MUNICH

Bavaria moves to ban cannabis at Oktoberfest and beer gardens

Germany may have legalised cannabis, but anyone hoping to enjoy a joint with their beer at this year's Oktoberfest may be disappointed.

Bavaria moves to ban cannabis at Oktoberfest and beer gardens

The southern state of Bavaria on Tuesday announced that it wants to ban the consumption of cannabis in beer gardens, at public festivals, on restaurant terraces and in some parks. 

The state government wants to “limit the public consumption of cannabis despite the federal government’s dangerous legalisation law”, according to a statement.

Clemens Baumgaertner, the head of the Oktoberfest, told the web.de news portal he specifically wants to make the festival a weed-free zone.

“A family festival like the (Oktoberfest) and cannabis consumption don’t go together,” he said.

Meanwhile, Bavaria state premier Markus Söder, of the CSU, tweeted that Bavaria was strengthening the protection of children and young people. 

“We will ban smoking weed in beer gardens and at public festivals,” he said. “In addition, local authorities will be able to prohibit smoking and vaping of cannabis products in public areas where large numbers of people regularly congregate, for example at tourist attractions, outdoor swimming pools and amusement parks.”

On April 1st, Germany became the largest EU nation to legalise recreational use of cannabis, despite fierce objections from opposition politicians and medical associations.

READ ALSO: What to know about Germany’s partial legalisation of cannabis

Under the first step in the much-debated new law, adults over 18 are now allowed to carry 25 grams of dried cannabis and cultivate up to three marijuana plants at home.

However, cannabis will remain banned for under-18s and within 100 metres of schools, kindergartens and playgrounds.

The changes leave Germany with some of the most liberal cannabis laws in Europe, alongside Malta and Luxembourg, which legalised recreational use in 2021 and 2023 respectively.

But under Germany’s federal system, each state retains a degree of freedom to decide how it will impose the rules.

Bavaria plans to amend the state Health Protection Act to limit how cannabis can be legally consumed. 

Politicians also plan a ban on consumption in the Englisher Garten, Hofgarten and Finanzgarten in Munich as well as the Hofgarten in Bayreuth.

The amended law is to be presented before the Whitsun holidays, which begin in mid-May this year. It is not yet clear when the law could be passed by the state parliament.

SPD legal expert in the Bavarian state parliament, Horst Arnold, criticised this  approach as “cannabis hysteria”.

With reporting by Rachel Loxton

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