The energy crisis and its consequences dominated the meeting of the Federal Council on Friday: the federal states gave the go-ahead for several relief measures planned by the federal government. Among other things, the federal government can now take on 200 billion euros in debt in order to depress gas and electricity prices. The chamber of states also elected a new president. The most important decisions at a glance:
Green light for 200 billion defense screen
The federal government can take on 200 billion euros in new debt to dampen gas and electricity prices and to provide company aid. The loans are to run outside of the normal federal budget via a so-called special fund. However, details of the planned energy price brakes are still open. So far, the federal government has launched a one-off payment: the gas advance payments are to be taken over in December. A commission of experts has also proposed that a price brake should apply to companies in January and private households from March or April.
No increase in the carbon price in 2023
The climate tax for heating and refueling will not be increased in the coming year due to the high energy prices. The increase from 30 euros per ton of carbon dioxide emitted to 35 euros will not come until January 1, 2024. The so-called CO2 price makes petrol, diesel, heating oil and natural gas more expensive and is intended to help reduce climate-damaging carbon dioxide emissions. From 2023 it will also apply to the combustion of lignite in power plants. The operators of waste incineration plants have to pay the CO2 price from 2024.
Countries want more help for small businesses
Because of the high energy prices, the Federal Council is calling for more government support for small and medium-sized businesses such as bakeries and retailers. They should be able to apply for help from the energy cost containment program, which has so far been aimed at industry. The program supports companies that cannot pass on sharply increased energy costs to their customers due to international competition.
Tschentscher becomes the new President of the Federal Council
The chamber of states elected Hamburg’s first mayor, Peter Tschentscher, as its new president. The 56-year-old Social Democrat will replace Thuringia’s Prime Minister Bodo Ramelow (left) on November 1st. The Federal Council Presidents are each elected for one year. The traditionally unanimous election follows a fixed order determined by the population of the countries. In the unofficial official order of precedence, the President of the Bundesrat is the fourth-highest representative of the state – behind the Federal President, the President of the Bundestag and the Federal Chancellor.