Merz Sets Crisis Talks to Tackle Energy Price Impact on Germany

(Bloomberg) — Germany plans to convene its national security council to discuss the global energy crisis, Chancellor Friedrich Merz said, signaling growing concerns about the impact on Europe’s largest economy.

“We will convene the National Security Council in Berlin in a very short time,” Merz said in his speech at the Hannover Messe trade fair, which he attended with Brazilian President Luiz Inácio Lula da Silva on Sunday. Merz said the council has the authority to take immediate action to ensure Germany’s energy security if needed.

“The German economy and its citizens must be able to rely on the fact that the supply of central products such as gasoline, diesel and aviation fuel remains guaranteed,” Merz said. “The market situation is currently tense, but supply in Germany is safe.”

“We are prepared for measures” if the situation escalates, Merz added. He did not specify what measures the government might take.

Deutsche Lufthansa AG, like other global airlines, announced cuts to its flight schedule in response to dwindling jet fuel reserves. Merz’s government has decided to reduce taxes on automotive fuel for two months in an effort to reassure drivers in Germany, where the average price of E10 premium gasoline rose to about 2.10 euros ($2.47) per liter from about 1.73 euros in January.

The Handover trade fair, considered the largest industrial showcase of its kind worldwide, was overshadowed by Germany’s slow growth as Merz’s ruling coalition fell short of promises to revive the economy.

Lula praised Brazil as “a reliable partner that can help the European Union reduce energy costs in a world full of instabilities.” He attacked US President Donald Trump and the “madness of the war against Iran”.

Merz and Lula will chair a cabinet meeting on Monday to strengthen their countries’ strategic partnership. Both sides will adopt a number of joint projects on raw materials, defence, digital transformation and climate.

Brazil is Germany’s most important trading partner in South America, with a trade volume exceeding 20 billion euros, according to government data. Brazil also plays a central role in Germany’s efforts to become less dependent on China for rare earth minerals.

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