Coalition agrees on extensive relief for citizens

The traffic light coalition is reacting to the sharp rise in energy and fuel prices with extensive relief for citizens in Germany. Plans include an energy price lump sum, a reduction in the energy tax on fuel for three months, and support for families and low-income earners. This was announced by the leaders of the SPD, Greens and FDP on Thursday in Berlin. Also planned are cheap tickets for buses and trains in local public transport – as well as measures for more energy efficiency.

The leaders of the SPD, FDP and Greens agreed on the package on Thursday morning. The talks had started at 9 p.m. the night before.

relief areas

The “middle” of society should be relieved quickly, unbureaucratically and socially justly, according to a resolution paper. Therefore, an energy price flat rate should be introduced: All employees who are subject to income tax will be paid a one-off energy price flat rate of 300 euros as a salary allowance.

The energy tax on fuels is to be reduced to the European minimum for a limited period of three months in order to relieve commuters and companies.

The coalition also wants to introduce a ticket for 9 euros per month for local public transport nationwide for 90 days. The countries should be given the appropriate funds for this.

In order to cushion particular hardships for families, a one-off bonus of 100 euros is to be paid out to the family benefits office as soon as possible for each child in addition to the child benefit. The bonus is offset against the child allowance.

The one-off payment of EUR 100 for recipients of social benefits that has already been decided is to be increased by EUR 100 per person. It was also said that with the current energy prices, it can be assumed that by January 1, 2023, the standard requirements will reflect the high price increases and will therefore be increased appropriately.

In order to enable a simple and unbureaucratic way for direct payments to citizens in the future, the federal government will develop a payment method for climate money via the tax ID before the end of this year.

The coalition also agreed on measures to increase energy efficiency. This should also help to reduce dependence on gas, oil and coal from Russia because of the Russian war of aggression against Ukraine.

From 2024, every newly installed heating system should be operated with 65 percent renewable energy – the coalition agreement had previously provided for January 1, 2025. The framework is also to be created for property owners to be able to replace their heating systems that are more than 20 years old. In addition, a major heat pump offensive is to be launched. Green leader Ricarda Lang spoke of phasing out gas heating.

That’s what the politicians say about it

Economics and Climate Protection Minister Robert Habeck (Greens) had called more efforts to save energy as a condition for a relief package. For example, he described gas heaters as “discontinued models”.

FDP leader Christian Lindner sees the agreement reached by the coalition leaders as proof of the government’s ability to act. “The coalition is convinced that we have to protect people and the economy in the short term and for a limited time in view of these enormous price increases,” said the finance minister.

Green leader Ricarda Lang sees the relief as a “declaration of independence in energy policy”. The measures take the breadth of society into account. However, it is unclear what is to come, and it is likely that not every burden can be absorbed.

SPD chairman Lars Klingbeil described the relief package as a contribution to social cohesion and stability in Germany. “This government puts the interests of the citizens first,” he said.

A coalition working group had previously failed in several rounds to reach an agreement on relief in response to rising prices. However, a “broad basis” has been developed not only for new relief, but also for decisive measures to strengthen energy independence, it said.

In February, before the Ukraine war broke out, the coalition had agreed on an initial relief package. Among other things, this provided for the abolition of the multi-billion EEG levy on the electricity bill from July. This was previously planned for early 2023. The package was also about an increase in the commuter allowance for long-distance commuters. (dpa)

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