From July, consumers in Germany should no longer pay an EEG levy on their electricity bill.

The leaders of the traffic light coalition of SPD, Greens and FDP agreed on Wednesday to curb high energy prices, as can be seen from a decision paper available to the German Press Agency.

Because of the persistently high fuel prices, the traffic light coalition also wants to raise the commuter allowance in the tax return.

The increase in the flat rate for long-distance commuters due on January 1, 2024 will be brought forward and will therefore be 38 cents retrospectively from January 1, 2022.

The Greens were initially skeptical about the idea.

In order to support employees, the employee lump sum for income tax is to be increased by EUR 200 to EUR 1,200, retrospectively from January 1, 2022.

Recipients of unemployment benefit II, basic security and social assistance should receive a one-off subsidy of 100 euros.

Children affected by poverty should receive an immediate surcharge of 20 euros per month from July 1st because of the high energy prices.

More information coming soon on FAZ.NET