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Germany: State clashes with EU over energy tax breaks

By  |  December 18, 2013

German authorities are reportedly contesting recent European Union plans to review Germany’s energy-price discounts offered to major German conglomerates that critics say distort competition.

Major companies including BASF and ThyssenKrupp are offered such discounts that allow the companies to avoid energy surcharges imposed on other consumers. Germany defended the policy, however, by arguing the investigation will threaten the jobs market.

The energy breaks were part of Germany’s plans to turn companies away from their dependence on coal towards renewable energy sources. But the European Commission said its probe will focus on the policy’s effects on market competition and how those breaks may affect other energy users.

Full Content: Wall Street Journal

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