A new support package will be launched to support German households and businesses that are struggling with high inflation and sharply increased energy costs. On Sunday, the coalition parties SPD, Die Grünen and FDP agreed on the details for the third set of measures, which together will cost 65 billion euros. “It is the largest package to date,” Chancellor Olaf Scholz said during a press conference. “That’s how we get through the winter.”
Retirees and students receive financial support – an energy surcharge to pay the bill. For families, measures such as a further increase in child benefit are included in the package. Households that are entitled to housing benefit also receive an extra contribution. For thousands of companies that use a lot of energy, there will be a tax reduction. The third package is significantly higher than the previous programs, which together cost about 30 billion. „We take the concerns of citizens [over inflatie] seriously,” Scholz said.
The previously introduced scheme for cheap public transport – a temporary ticket for regional public transport of 9 euros per month – will be extended. One and a half billion euros will be made available for the follow-up of that popular fuel-restricting public transport measure, Scholz said during the press conference. In order to be able to extend this measure, the federal states must contribute an equal amount. The final ticket will be more expensive: between 49 and 69 euros per month.
During the press conference, the chancellor mainly wanted to explain the energy crisis that has arisen as a result of the war in Ukraine. Energy prices have skyrocketed. There are also concerns that Russia will completely shut down the gas supply via the Nord Stream 1 pipeline to Germany. The gas supply has been cut off since Wednesday, according to Gazprom due to unforeseen work and the discovery of a leak. Scholz was clear: “Russia is no longer a reliable energy supplier.” According to him, Germany can survive the winter without Russian gas. “The federal government has been preparing since the beginning of the year” for the loss of that foreign gas supply, such as by diversifying gas supplies.
Read more about energy cost compensation in Germany: High discount on German train tickets and on petrol