The Finance Ministry has provided an estimate of approximately €50 billion in relief and stabilization measures to address the economic fallout from Germany’s decision to drastically reduce imports of Russian natural gas following the escalation of the Ukraine conflict. This spending covers electricity and gas price caps, one-time payments to pensioners, and rescue packages for gas companies, according to the ministry’s response to an inquiry by Green Party MP Robin Wagener.
The shift away from Russian natural gas—previously accounting for 55% of Germany’s consumption—has driven up energy costs and contributed to a prolonged economic slump, adversely affecting households and industries while undermining German competitiveness. Multiple experts have warned that the overall economic toll of the energy crisis, including investments in 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 that “cheap energy from Russia was the secret of the success of ‘Made in Germany.’”
A recent study titled “The Political Consequences of Energy Price Shocks” found that large and sudden increases in household energy costs coincide 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.
This trend has been especially pronounced in former East Germany, where energy prices rose most sharply. The study notes the AfD’s electoral gains in Thuringia, Brandenburg, and Saxony during 2023 and 2024. In Sunday’s 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%. Recent polls indicate the AfD is Germany’s most popular party nationally, with support hovering around 28%.
