Germany needs to invest more in renewable energy sources and continues to move away from fossil fuels, the European Commission (EC) announced.
The commission, which serves as the EU's executive arm, advised Europe's biggest economy to further reduce its dependence on fossil fuels in a series of economic policy recommendations, which came as part of a broader analysis presented to EU member states.
The commission stressed the need for EU governments to end public support for households and businesses for high energy costs and use the savings to pay off the debt accumulated since the pandemic.
"Although energy prices have recently fallen, we still face many challenges," said EC Vice President Valdis Dombrovskis.
The EC specifically advised Germany to increase efforts to improve energy efficiency in industry, construction and transport.
However, the EC believes that Germany is on the right track in reducing macroeconomic imbalances. The body advised Germany to follow "prudent" spending and taxation policies.
The commission also warned that regular EU debt rules, which were suspended during the pandemic, will come back into effect with penalties starting next year.
"Germany should take this into account when spending this year's state budget and drawing up spending plans for the following year," the EC recommendation states.
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