The German governing coalition presented a powerful package of relief measures of 65 billion euros, this within the framework of the energy crisis. A part will be financed from the super profits of energy concerns.
The third package of easing measures agreed at midnight (04.09.) by the heads of the German governing coalition, the Social Democrats of the SPD, the Greens and the liberals, the FDP contains a financial volume of 65 billion euros. This was announced on Sunday by the publication of the 13-page decisions of the coalition. The expected high energy prices for citizens, citizens and enterprises will be reduced through certain measures, it is stated in the decision of the coalition. "This supports the economy and the labor market, because citizens will continue to consume and businesses will invest further."
This third package of relief measures of 65 billion is bigger than the two previous packages, Chancellor Scholz (SPD) said during the presentation of the relief measures at the press conference in Berlin. "All the packages together sum up 95 billion euros. "It's a lot what we're putting in motion, but it's necessary," said Scholz.
Income will be received from special taxes on the surpluses of energy concerns
The chancellor, Olaf Scholz, has stated that the government will ensure that the prices of gas, oil and coal are lowered for the citizens. For this, income from the surplus profits of energy concerns will be used. "Random profits" of the corporations will be taken, Chancellor Scholz said during the presentation of the third package of easing measures on Sunday. For this, the German government will seek a solution at the EU level, but the coalition partners are ready to "implement without delay" a special profit tax at the national level as well.
"We will succeed this winter", said Scholz during the presentation of the results of the coalition consultation and expressed his belief that this package will be a great help to the citizens. "Our country is in a difficult time," Scholz said in Berlin, "but we will get through this difficult period together as a country." The German government takes the concerns of citizens and businesses "very seriously" due to the massive increase in prices, said Scholz. "We will not leave anyone alone."
In order to facilitate the citizens who have to pay high electricity prices, the maximum limit of the electricity price will be set. "Household economies will be charged a large amount of energy at a reasonable price (it is about basic consumption). So they will be significantly relieved and thus there is also an incentive for energy saving", it is announced in the decision of the coalition.
What are the concrete measures?
In the future, the German government will orientate the regulation of certain social benefits (Sozialeistungen, ed.) with the development of inflation. Scholz spoke of a paradigm shift. As concrete relief measures, the number of people receiving social assistance for housing will be increased - from 640,000 people currently to about 2 million people. Pensioners from December 1, 2022 will receive an energy contribution of 300 euros. A lump sum of 200 euros will be given to students. Whereas the social assistance (Hartz IV) from January 1, 2023 will be renamed to the citizen fund and inflation will be taken into account for basic assistance, bringing it to 500 euros. The monthly contribution for the child will increase by 18 euros on January 1, 2023. The coalition announced that the assistance programs for enterprises will be extended until December 31, 2022.
Very powerful package
Chancellor Scholz made Russian President Vladimir Putin responsible for the energy supply bottlenecks, due to the reduction of gas supplies after the start of the war in Ukraine. "Putin's Russia is a contract breaker," Scholz said. It is already clear that Russia "is not a reliable energy supplier", but Scholz expressed optimism that the energy supply is secured.
The German Minister of Finance, Christian Lindner (FDP) has said about the new package of relief measures, that with it the damage to Germany must be avoided. This is a "very powerful" package, which was negotiated for 22 hours, Lindner said. Meanwhile, Greens co-chair Ricarda Lang wrote on Twitter that it was a long night, but "we finally have a relief package that supports millions of citizens and prepares us for winter." The focus of this package is on "those who need it most, on people with low incomes."/ DW