Germany announces energy windfall tax and €65bn package to help ease prices
Germany “will get through this winter”, said Olaf Scholz as he announced a €65bn (£56.1bn) package to help households and companies manage soaring energy prices, including a windfall tax on electricity producers.
The Social Democrat chancellor said on Sunday he was “very aware” many Germans were struggling to cope with rising prices, and that the government was prepared to help.
“As a country we will get through this difficult time,” Scholz said at a press conference with coalition partners, the Greens and the pro-business Free Democratic party. “We take these concerns very, very seriously.”
Scholz said Germany would use income from windfall taxes on electricity producers he accused of making “excessive” profits to reduce consumer prices for gas, coal and oil.
Some energy companies which may not be using gas to generate electricity were “simply using the fact that the high price of gas determines the price of electricity and are therefore making a lot of money,” he said. “We have therefore resolved to change the market organisation in such a way that these random profits no longer occur or that they are skimmed off.”
The German government has already announced €300 (£260) one-off payments for workers, but will now extend help to other groups. Pensioners, for example, will get €300 and students €200 (£170). Aiming to push down costs, the government also promised a “price brake” on energy costs, saying it planned to offer a yet-to-be determined amount of energy to all at a lower rate.
According to Associated Press, the government will also develop a successor to the popular €9 ticket, which allowed unlimited travel on local and regional transport across the country. The €9 ticket was announced in June for three months as part of
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