Germany agrees to €65 billion package to support consumers tackle inflation

The government of Germany agreed to a €65 billion package of measures to support the consumers in the face of skyrocketing energy prices as well as high inflation, this weekend.

This is the third as well as the largest support package that the authorities of Germany have agreed on since Russia’s full-scale military operation against Ukraine. Combined, the first two amounted to €30 billion worth of measures; this one will go much further in the measures it puts in place.

The Chancellor of Germany, Olaf Scholz, mentioned in the statement when presenting the measures on Saturday, “Germany is united in these difficult times.”

“Our third relief package is bigger than the first two combined. It is particularly important to me that it supports those who have a low income and who fear for their livelihoods.”

Among other measures, Germany will introduce a successor to the €9/month ticket for public transport that proved so popular during the months in summer.

Along with this, pensioners and students will also be entitled to a one-off premium of €300 and €200, respectively, to help them pay their energy costs, Scholz specified to the sources. Earlier, the employees already received an energy premium of €300 as well as unemployed people received one of between €100 and €200.

In addition, the benefits will be increased as well as child allowances will be raised by €18 for first as well as second children. In recent months, parents have already received a one-off “Child Bonus” of €100.

Furthermore, Germany will also introduce a price cap for a basic level of energy consumption, which would mean that the consumers should only have to pay higher prices if they consume more.

Scholz stressed that by skimming off the surplus profits of the electricity-producing companies, the intention is to reduce prices overall, which means that the package will affect “all households.”

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