German Gas Commission Experts: First relief measure should be in place by end-2022

Experts from the German Gas Commission came out on the wires, via Reuters, this Monday, sharing their view on the government’s gas relief program.

Following 35 hours of consultations, the commission unanimously agreed on its recommendations to the government, Germany's expert commission said in a statement.

Key takeaways

By the end of the year, the first relief measure should be in place.

Supply situation remains tense despite full storage.

Ideally, relief will reduce inflation.

We do not want Europe to think that Germany is going alone, we should show solidarity.

Two-stage model proposed: firstly, with payment for month of December, secondly gas and heating price brake from march until end of April.

Price should be reduced to 12 cents for 80% of usage.

Those who save will profit from this model.

Threat to industry is threat to security and social system too.

We are heading towards recession.

For industry, procurement price of 7 cent proposed.

The one-off payment, planned for December, would cost the government around 5 billion euros ($4.86 billion), Reuters reports, citing a source familiar with the negotiations.

Market reaction

EUR/USD was last seen trading at 0.9687, down 0.56% on the day. The shared currency pay little heed to the above headlines on German gas relief measures.