The German government agreed this Sunday on a new aid plan for purchasing power and businesses, in the context of high inflation, through measures totaling 65 billion euros.

"Rapid and proportionate aid to citizens and businesses is necessary due to the rapid increase in energy prices", explains this document drawn up after weeks of laborious discussions between the three parties of the Social Democratic Chancellor's coalition. Olaf Scholz, meeting on Saturday, until late in the evening, to finalize this plan.

super profits tax

Germany "will be able to face this winter" and ensure its energy supply despite the drying up of Russian gas deliveries on which its economy is highly dependent, assured the Chancellor on Sunday.

Olaf Scholz wants to use windfall corporate profits to drive down prices.

"Producers simply take advantage of the very high gas prices which determine the price of electricity", observed the Chancellor during a press conference.

The aid includes a check paid to students and retirees as well as an increase in housing allowance, according to the document.

Towards 10% inflation?

Inflation rose again in Germany in August, to 7.9% year on year, still driven by soaring energy prices in the wake of the war in Ukraine.

In October, a tax on gas intended to avoid the bankruptcy of German energy groups must come into force.

It will lead to a further increase in household energy bills, by several hundred euros.

The head of Germany's central bank, the Bundesbank, has deemed it likely that inflation will reach 10% by the end of the year, a first since the 1950s. As in other European countries, rising prices feeds the anxiety of the population and the calls to demonstrate, mainly on the initiative of the extreme right or the extreme left, worry the government.

Since the beginning of the Russian invasion of Ukraine at the end of February, the government of Olaf Scholz has already released two trains of household aid totaling some 30 billion euros.

Some of these measures have recently expired, such as the fuel discount and the popular €9 per month season ticket on all public transport, excluding high-speed lines.

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