In Germany, a massive support plan in the face of rising energy prices
Olaf Scholz, center, flanked by his Economics and Climate Minister Robert Habeck, left, and his Finance counterpart, Christian Lindner, right, at a press conference on the energy supply situation in Germany , this Thursday, September 29, 2022 in Berlin, the Chancellor being on his side in solitary confinement.
AP - Markus Schreiber
Text by: RFI Follow
2 mins
European countries are facing the worst energy crisis of the post-war period.
Germany, particularly dependent on Russian gas until the invasion of Ukraine by Moscow, sees prices explode.
On Thursday September 29, the government announced a massive support plan for individuals and businesses to cap energy prices and reduce the consequences of the current crisis.
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With our correspondent in Berlin,
Pascal Thibaut
There was already the “Wumms”, now there is the “double Wumms”, a German word that could be translated as “it's going to rock”.
While Germany is threatened with a recession next year, Olaf Scholz has once again chosen a colorful expression to present the 200 billion package that Berlin will release to cap energy prices.
The measures, the details of which have not yet been determined, will benefit individuals and businesses alike, burdened by a drastic rise in their electricity and gas bills.
►Read again: Energy crisis: Chancellor Olaf Scholz completes a mixed tour in the Gulf
This support is planned until the spring of 2024. An economic stabilization fund will finance this expenditure through credits.
This option outside the current budget should enable the Minister of Finance to reinstate the strict golden rule next year.
The announcement echoes the demand expressed on Wednesday by the regional presidents for massive measures to combat the growing concerns of the population.
Demonstrations against rising prices have already taken place.
The far right is rising in the polls and exploiting these fears.
The package of 200 billion is added to the three aid plans of 100 billion already adopted by Berlin.
The VAT rate on gas has been lowered.
The controversial gas surcharge, which was to come into effect on Saturday, is for its part buried.
It would have increased the bill for individuals and businesses.
inflation reached 10% in September in Germany.
New record
— Pascal Thibaut (@pthibaut) September 29, 2022
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Germany
Olaf Scholz
Energies
finance