@techreport{Jaeger, type = {Working Paper}, author = {J{\"a}ger, Philipp}, title = {Cautionary tale or model for Europe? How member states should react to Germany's new electricity subsidy}, pages = {14}, abstract = {The EU's updated state-aid rules now permit direct industrial electricity subsidies (IESs), allowing Germany to introduce its planned 'Industriestrompreis'. This policy brief presents new data on subsidies for industry in major EU member states, showing that the competitiveness threat of the planned German IES is limited. As industrial policy tools, however, IESs are argued to be blunt and fiscally expensive, compared to narrower instruments targeted either at decarbonisation, EU resilience or economic objectives. Other member states should hence refrain from simply copying the German IES. Ultimately, national subsidies like an IES can only help industry if swift and substantial progress is made towards a more durable policy framework characterised by a strong EU dimension.}, language = {en} }