German government invests 65 billion euros in new measures against high inflation and energy prices | Abroad

German government invests 65 billion euros in new measures against high inflation and energy prices | Abroad
German government invests 65 billion euros in new measures against high inflation and energy prices | Abroad

UpdateIn Germany, the three ruling parties have reached an agreement on a third package of measures to help consumers cope with high inflation and energy prices. According to Chancellor Olaf Scholz, more than 65 billion euros will be invested. That should help his country through the winter, he says.

That money will go to, among other things, a successor to the cheap ticket of 9 euros per month for all public transport that proved very popular during the summer (1.5 billion) and tax reductions (1.7 billion) for 9,000 companies that use a lot of energy.

Retirees and students are entitled to a one-off premium of 300 and 200 euros respectively to help them pay their energy costs. The benefits will be increased and the child benefit will be increased by 18 euros for first and second children.

Price ceiling

It is also important that the government wants to introduce a price ceiling for a basic level of energy consumption. As a result, consumers would only have to pay the higher prices when they consume more. By skimming off the surplus profits of the energy companies, the government wants to push down the general price level. She therefore emphasizes that the package is intended for “all families”.

© REUTERS

According to Scholz, this is the “largest package of measures to date”. The first two packages together amounted to 30 billion euros. Scholz further called Russia “not a reliable energy partner”.

As in other European countries, gas and electricity prices are also rising in Germany as a result of the war in Ukraine. This has repercussions on other consumer prices: inflation in our eastern neighbors stood at 7.9 percent in August, but analysts expect it to rise to 10 percent or more by the end of the year. That was before the new measures were announced.

Europe

In the text of their agreement, the social-democratic, liberal and green government partners also refer to Europe, where “the possibilities are discussed to skim off the surplus profits of energy companies”. Among other things, they talk about “revenue or price ceilings for high-profit electricity producers”.

As is known, the European energy ministers will meet in emergency session on Friday. We are also waiting for concrete proposals from the European Commission for an “emergency intervention” in the electricity market and a structural reform.

Also see: “Germany faces biggest energy crisis ever”

Banks are working on a solution for those who can no longer pay off a loan (+)

Ukraine wants to export electricity to Germany

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The article is in Dutch

Tags: German government invests billion euros measures high inflation energy prices

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