The German government has agreed on a €200bn relief package to shield households and industry against surging energy prices. Under the proposals, which are expected to last until the spring of 2024, the country would enact an emergency price brake on gas. The specifics will be released in October 2022. Gas and district heating sales tax will decrease from 19% to 7%.
In addition, the government is abandoning a proposed gas tax designed to aid businesses suffering from high spot market pricing, and instead support struggling importers directly. Finally, basic electricity consumption of consumers and small and medium-sized companies will be subsidised with a temporary price freeze. The Economic Stabilisation Fund, which was initially established to help the economy during the pandemic, would be used to pay for the package.