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“Rapid and proportionate assistance to citizens and businesses is essential due to the rapid rise in energy prices,” wrote the document, drawn up after weeks of discussions between coalition partners.
The package provides, inter alia, 1.5 billion euros for public transport cuts and 1.7 billion euros for tax cuts for 9 thousand. Firms are from energy-intensive industries.
According to Bloomberg, the government aid will cover the increase in energy prices that will occur between 2022 and 2023.
tax on excess profits
The government also intends to allocate funds from the tax on excess profits to reduce the prices of gas, fuel and coal for consumers.
“Such an extraordinary tax will be imposed on some energy companies that benefit from higher prices,” Chancellor Olaf Schultz told a news conference. He added that he would strive to offer such a solution at the EU level, but Germany was ready to act at the national level.
– These are the largest aid packages agreed so far – Schultz emphasized.
Germany is facing an energy crisis spiral caused by Russia’s decision to complete it Shutdown of gas supply through the gas pipeline Nord Stream 1 In the aftermath of the war with Ukraine and international sanctions.
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