Is Germany’s EUR 200bn gas price caps a game changer in the energy affordability crisis? The MUFG Global Markets Podcast

With a deep recession looming, Germany’s government has announced a EUR 200bn gas price cap to support corporates and households to contain the energy affordability crisis. This may soften the coming recession but poses unprecedented risks.

Whilst precise details are yet to announced, Ehsan Khoman, Head of Emerging Markets Research (EMEA), believes that from a energy markets perspective, gas price caps are not a solution without a corresponding cap on the demand-side of the equation. As such, he views that the measures might at best limit, and at worst reduce, the gas demand destruction needed to rebalance the extremely tight market.

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