Europe
German government to spend record €29.5 billion on electricity subsidies in 2026
The German federal government will spend €29.5 billion next year to reduce electricity prices for businesses and private households. This amount represents a record level.
This figure was determined according to calculations made by the German Economic Institute (IW) for the newspaper Handelsblatt. IW energy expert Andreas Fischer stated in an interview that very high subsidies are currently being paid to keep electricity prices under control.
“However, in the long term, this is a very expensive solution and does not solve the root of the problem,” Fischer said.
According to the IW executive, a more efficient expansion of electricity grids and renewable energies could help lower electricity prices.
Fischer is not alone in his criticism. A report published in early December by the expert commission for monitoring the energy transition states that affordable energy for households and businesses is extremely important to prevent industrial relocation and ensure broad acceptance of the energy transition.
However, according to the commission’s report, measures that reduce system costs and thus increase the efficiency of the energy transition should take priority over aid provided from state funds.
The Expert Commission on the Monitoring of the Energy Transition is an independent body appointed by the German government that evaluates the progress of the energy transition annually. The commission is chaired by energy economist Andreas Löschel, who is based in Bochum.
The €29.5 billion amount calculated by the IW includes the loss of revenue resulting from the German government’s reduction in electricity tax (€3.9 billion), funds allocated for the industrial electricity price that will be effective from 2026 (€1.5 billion), and the planned subsidy for transmission grid fees amounting to €6.5 billion.
In addition, €3 billion has been allocated for electricity price compensation. This tool has been in use since 2014.
Approximately 340 companies benefit from this compensation. These companies receive compensation because electricity producers pass on the costs of purchasing emission permits, which they need to operate gas or coal-fired power plants, to their customers.
Large industrial electricity consumers receive a portion of these costs back. The federal government plans to expand the scope of beneficiaries and increase compensation.
In addition, there is a financial requirement of €14.6 billion estimated by transmission system operators for the promotion of renewable energies under the Renewable Energy Sources Act (EEG).
However, the exact amount cannot be predicted with certainty. This amount depends largely on the state of wholesale electricity prices.
The total of €29.5 billion for 2026 is significantly higher than the amounts in previous years. According to the IW, public funds to finance the electricity system reached only €4.13 billion in 2020.
This amount consisted of €3.3 billion for exemptions from the electricity tax and €830 million for electricity price compensation. This analysis does not take into account the financial expenditures for emergency measures during the 2022 and 2023 energy price crisis.
Politicians want to help lower electricity prices with these payments of billions of euros. Electricity prices in Germany have been at very high levels for years compared to other European countries.
This situation applies both to the electricity prices paid by private households, businesses, trade, and service companies, and to industrial electricity prices.
There are various reasons for the high electricity prices. The expansion of electricity grids has become a major cost factor. Grid operators have already invested enormous amounts and will have to spend hundreds of billions of euros in the coming years to make them suitable for the energy transition. For electricity consumers, this is reflected in increasing grid fees.
In addition, tens of billions of euros are spent annually for the expansion of renewable energy. For this reason, one of the measures taken in the past to reduce prices was the complete removal of the surcharge under the Renewable Energy Sources Act (EEG) in mid-2022.
In 2021, an average household still had to pay an EEG surcharge of 6.5 cents per kilowatt-hour. For an average household with a consumption of 3,500 kilowatt-hours, this meant an EEG cost of €227.50. Today, these funds are provided from the Climate and Transformation Fund (KTF).
The current federal government has decided to take additional aid measures. These include the industrial electricity price, which will come into effect at the beginning of the year. However, the aid measures fall far below the expectations of companies. Companies will be able to reach the promised price level of 5 cents per kilowatt-hour for only a portion of the electricity they consume.
The federal government coalition also failed to fulfill its promise to reduce the electricity tax for all consumer groups to the minimum level allowed by European laws. Instead, it insisted on the reduction for industry, agriculture, and forestry, which had essentially already been decided by the previous government.
Last summer, Federal Finance Minister Lars Klingbeil (SPD) announced that there was not enough money for more comprehensive aid measures.
However, the government fulfilled its promised €6.5 billion subsidy to reduce electricity transmission grid fees.
Despite the record amount, the government is still unable to fulfill its promises. In this context, the warnings of experts to reduce the overall costs of the system instead of spending billions of euros for price reductions are becoming even more important.
Federal Economy Minister Katherina Reiche (CDU) is trying to take this point into account. In recent months, she has repeatedly emphasized that she wants to make the energy transition more efficient.
In mid-September, Reiche presented ten key measures designed to help reduce the costs of the overall system.
The measures include a change in the promotion of renewable energies and a greater focus on grid expansion in the expansion of renewable energies.
Europe
Most EU citizens reject fast-track Ukraine accession, poll finds
An opinion survey conducted across the European Union has revealed that 53% of bloc citizens oppose admitting Ukraine to the EU through an accelerated process in the coming years.
According to the study carried out by the Bertelsmann Foundation, 47% of EU residents support the idea of fast-track membership.
The most pronounced opposition to rapid accession was recorded in Romania at 60%, followed by Germany at 59%, and France and Poland at 57% each.
The lowest resistance to Ukraine’s accelerated membership was found in Sweden at 31%. This figure stood at 37% in Spain and Portugal, and remained at 43% in the Netherlands.
Domestic support for the process remains exceptionally high; 83% of the public in Ukraine want to join the bloc as soon as possible.
Europeans differ over defence contributions and strategic benefits
The survey also examined perceptions regarding the defence of the continent. Some 58% of Ukrainians believe that their “resistance against Russia’s military campaign protects the entire continent and the EU as a whole.”
In contrast, 29% of bloc citizens share the view that the EU and its member states contribute more to defending the union than Ukraine does.
While 23% of participants view the efforts of both sides as equal, the share of those who consider Ukraine to be the bloc’s “primary protector” remains at 16%.
The study also indicates that low expectations concerning the tangible benefits Ukraine would provide to the bloc contribute to the limited support for its membership.
Only 14% of surveyed Europeans believe that this accession will make the EU stronger and more influential on a global scale. Meanwhile, the proportion of respondents who anticipate that Ukraine’s entry will increase the bloc’s resilience was measured at 11%.
Timetable debate persists in the negotiation process
Ukraine applied for membership immediately after Russia’s military intervention and gained candidate status in 2022.
The accession process encompasses a 33-chapter reform package organised under six clusters, which aims to guarantee democratic and economic standards.
Formal accession talks began in June 2024. The negotiation process, which had long been blocked by Hungary, made progress after Peter Magyar took office as the country’s prime minister.
Magyar also succeeded in having the term “accelerated accession” for Ukraine removed from EU texts.
Magyar argued that a contrary approach would send the wrong message to Western Balkan nations, such as Serbia, Albania, Montenegro, and North Macedonia, which have worked towards membership for years.
Ukrainian President Volodymyr Zelenskyy has called for the membership process to be completed by 2027, stating that this would provide a fundamental security guarantee for both Ukraine and Europe.
On the other hand, circles within the bloc that oppose rushing the process insist on the complete fulfilment of all conditions, including anti-corruption measures.
Meanwhile, the EU Ambassador to Ukraine, Katarina Mathernova, points to 2030 as a likely accession date.
For membership to take place following the completion of negotiations, all 27 EU member states must grant unanimous approval.
So far, only the first of the six chapter clusters, covering fundamental values and principles such as the rule of law, human rights, and the judiciary, has been opened for Ukraine.
Europe
NATO unveils 32-nation defence strategy to counter adversaries
NATO Supreme Allied Commander Europe (SACEUR) Alexus Grynkewich has unveiled a new defence strategy aimed at rendering any attack against an alliance member entirely futile.
Speaking at the Warsaw Security Forum, Grynkewich said the concept, titled the “Theory of War”, is designed to prevent hostile elements from infiltrating NATO territory and waging conflict there.
Arguing that they aim to reassure the one billion people living within the alliance’s borders, Grynkewich maintained that they also wish to send a message to adversaries such as Russia that NATO is prepared for a potential invasion.
“If we are attacked, we are ready to fight even tonight,” Grynkewich said.
Three-stage defence plan enters into force
Approved by all 32 alliance members, the plan combines land forces and conventional weapons systems with advanced technologies such as unmanned aerial vehicles, counter-drone systems, and artificial intelligence.
Lessons drawn from ground and air combat in Ukraine, as well as current conflicts in the Middle East, play a decisive role in shaping the strategy.
According to Grynkewich, the new defence doctrine rests on three fundamental phases that form the core of NATO’s approach:
The first pillar of the plan, the “block” phase, focuses on preventing hostile forces from seizing allied territory.
In this context, NATO ground components will engage directly with attacking units, restrict their manoeuvrability, and neutralise forces attempting to breach alliance borders.
Should the assault continue, the second phase (“blunt”) will come into play, deploying autonomous systems requiring minimal human intervention alongside advanced sensor networks to slow the momentum of the attack and wear down advancing forces.
These systems will detect threats in real time, combining capabilities across different operational domains to halt the adversary’s advance.
The final stage, the “break” phase, will target not the attacking units directly, but the operational warfighting system that sustains them.
Command centres, supply chains, and logistics routes will be struck using long-range precision strike systems and sensor networks, eliminating the adversary’s ability to sustain military operations.
“Enemy commanders will not be able to direct their troops, their supply lines will be severed, and their logistics vehicles will be destroyed,” Grynkewich said.
Strategy aims to defend borders rather than gain territory
Noting that NATO has no intention of acquiring territory and that the strategy is entirely defence-oriented, Grynkewich said, “We have no plan, intention, or ambition beyond protecting our citizens and our territory.”
Stating that he considers the likelihood of a direct attack on alliance territory to be low, the commander nevertheless stated that they would respond without hesitation to any attempt targeting allies.
Addressing questions regarding US commitment to the alliance, Grynkewich recalled that Washington reaffirmed its adherence to Article 5 at the NATO summit in July.
Article 5, which forms the cornerstone of NATO’s collective defence principle, stipulates that an armed attack against one ally is considered an attack against all members.
Europe
Germany detains two Turkish suspects over Polish Starlink arson
Polish authorities have announced that German police detained two Turkish citizens suspected of setting fire to a Starlink station near Warsaw last month.
Tomasz Siemoniak, Poland’s minister coordinating the special services, told a news conference in Warsaw on Monday that Poland has requested the suspects’ extradition and has “no doubt” that Russian secret services were behind the arson attack.
“It should also be noted that Russian intelligence agencies are increasingly turning to people linked to the criminal underworld,” Siemoniak said at the press conference.
In a post on X, Prime Minister Donald Tusk described the incident as another “act of hybrid warfare” and said those responsible for the sabotage would be brought to justice in Poland.
Interior Minister Marcin Kierwinski said the two Turkish citizens would be charged in Poland with carrying out an act of sabotage on the orders of a foreign intelligence agency.
Power supply equipment at a Starlink ground station serving Eastern Europe, including Poland and Ukraine, caught fire on the night of 23 September.
The incident did not cause a major disruption to internet service. The blaze, however, completely destroyed the station’s electrical system and backup generator.
Poland, a key transit route for Western aid to Ukraine, has faced a series of suspicious incidents recently.
Numerous cyberattacks have targeted public utilities, including water and energy infrastructure as well as hospitals.
In addition, damage to a railway line between Warsaw and the Ukrainian border was attributed by officials to Russian sabotage.
In late July, a Russian missile also landed in Poland.
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