Germany’s governing coalition has agreed on a new €65 billion relief package to help its citizens cope better with the rising cost of energy and inflation. It's following 22 hours of negotiations after it struggled for weeks to come up with a third relief fund.
The German Chancellor stressed that, "it's about €65 billion if you add it all up, it's about €95 billion if you include the first two relief packages."
Olaf Scholz hopes to skim off the windfall profits from energy companies to help pay for it. The so-called excess profits tax has also been discussed at the European level for weeks.
"Many, many, many billions"
He said he hoped "many, many, many billions" would make a massive difference, adding that he would use "what we raise to relieve the burden on citizens and ensure a basic supply of electricity at cheaper prices."
It's the gas-fired power plants which currently determine the high market price. And those which don't use gas to make electricity, are increasing their prices, consequently making a lot of money.
So a revenue cap on the electricity market will be created. It'll affect producers of renewable energy such as wind, solar, and hydro power plants.
However currently there are no plans to tax the increased profits of oil companies to help subsidise fuel prices for German drivers. But pensioners and students will receive a one-time energy allowance of €300, and the standard rates for the needy and child benefit will be increased.
And there will be also a successor to Germany’s popular 9-Euro-Ticket, which was originally only supposed to allow unlimited travel within the country for three months.
While the government is yet to announced the new price for the tickets, it could cost between €49 and €69 per month, a considerable jump from its previous price tag.