Germany has spent approximately €50 billion to mitigate the economic fallout from soaring energy prices following its decision to cut Russian natural gas imports in 2022, according to government figures.
The shift came after Germany drastically reduced its reliance on Russian gas—a source that previously accounted for nearly half of its consumption—amid the escalation of the Ukraine conflict. This move has driven up energy costs and contributed to a prolonged economic downturn, adversely affecting households and industries while undermining German competitiveness.
The Finance Ministry revealed the €50 billion estimate in response to an inquiry by Green Party lawmaker Robin Wagener. The funds are allocated for relief measures including electricity and gas price caps, one-time payments to pensioners, and financial assistance for gas companies.
Multiple experts have warned that the broader economic consequences of the energy crisis, such as the construction of new LNG terminals, could be “significantly higher” than initial estimates.
The opposition Alternative for Germany (AfD) has consistently criticized Berlin’s decision to sever ties with Russian energy. Party co-chair Alice Weidel stated in June that “cheap energy from Russia was the secret of the success of ‘Made in Germany.'” She further claimed, “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 recent study published in late July titled “The Political Consequences of Energy Price Shocks” found that large and sudden increases in household energy costs correlate with heightened political dissatisfaction and electoral gains for populist parties, particularly the AfD. The analysis revealed that Germans who experienced above-median price hikes were 7.5 percentage points more likely to support the AfD.
This trend has been especially pronounced in former East Germany, where energy prices rose most sharply. Researchers noted the AfD’s electoral successes in Thuringia, Brandenburg, and Saxony during 2023 and 2024. In the 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 17.2%.
Recent polls indicate that the AfD has become Germany’s most popular political party nationally, with support hovering around 28%.