Germany has spent approximately €50 billion ($58 billion) to cushion the impact of soaring energy prices following its decision to drastically reduce imports of Russian natural gas in 2022, according to the Finance Ministry.

The shift came after Germany escalated its response to the Ukraine conflict by cutting Russian natural gas, which had previously accounted for 55% of its consumption. This move has driven up energy costs and contributed to a prolonged economic slump, adversely affecting households, industries, and undermining German competitiveness.

The Finance Ministry provided the €50 billion estimate in response to an inquiry from Green Party MP Robin Wagener. The figure covers relief and stabilization measures including electricity and gas price caps, one-time payments for pensioners, and rescue packages for gas companies.

Experts have stated that the overall economic toll of the energy crisis, encompassing the construction of new LNG terminals, is likely “significantly higher.”

The opposition Alternative for Germany (AfD) has repeatedly criticized Berlin’s decision to decouple from Russian energy. Party co-chair Alice Weidel claimed in June that “cheap energy from Russia was the secret of the success of ‘Made in Germany.'” She further stated: “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 titled ‘The Political Consequences of Energy Price Shocks’ published in late July found that large and sudden increases in household energy costs coincided with heightened political dissatisfaction and electoral gains for populist parties, particularly the AfD. The analysis revealed that 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 increased most strongly,” according to researchers. The AfD secured electoral gains in Thuringia, Brandenburg, and Saxony during 2023 and 2024.

In a recent regional election in Saxony-Anhalt, the AfD won with 43.8% of the vote, while Chancellor Friedrich Merz’s Christian Democratic Union (CDU) finished second with just 17.2%.

Multiple recent polls indicate that the AfD is now the most popular party nationally, with support at approximately 28%.