Germany unveils new plan to tackle soaring energy costs
The German government announced on Sunday a huge new aid plan to combat skyrocketing energy costs and inflation, which will total 65 billion euros in support.
“Germany stands together in a difficult time," said Chancellor Olaf Scholz at a press conference on Sunday. "As a country, we will get through this difficult time.”
Scholz made the announcement along with leaders from the Greens and the pro-business FDP -- the Social Democrat's two main coalition partners -- after late-night talks on Saturday, which finalised a long-awaited action plan.
Repeating his mantra that Germans will "never" face the energy crisis "alone", Scholz unveiled the package of measures, including a one-off payment of 300 euros for millions of pensioners and 200 euros for students to cover energy costs.
A planned price cap on a basic amount of energy consumption for families and individuals and a successor to the country’s popular “9-euro ticket” for nationwide public transport were also announced.
Scholz indicated that windfall profits currently being made by some energy companies will be used to help fund this relief, though it appears members of the FDP are resisting a tax.
The German chancellor said he was “very aware” that many Germans are struggling to cope with the rising prices and that the government is prepared to help.
"We take these concerns very, very seriously,” he said.
Inflation rose again in Germany in August to 7.9% over one year, driven by soaring energy prices caused by Russia's invasion of Ukraine.
In October, a tax to help German energy companies reduce their dependence on Russian gas will come into force, which is likely to cause bills to rise even higher.
The head of Germany's central bank, the Bundesbank, estimates that
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