Germany's coalition government has agreed on a €65bn plan to provide financial assistance to households, aimed at easing the pressure amid soaring inflation and energy costs, as Russia cuts off its gas supplies to Europe.
The measures notably include benefit hikes and a public transport subsidy (€1.5bn), to be paid for from a tax on electricity companies and by bringing forward Germany's implementation of the planned 15% global minimum corporate tax. Windfall taxes will indeed be levied on energy companies to lower the price of gas, oil and coal for consumers.
The plan also includes a one-off payment of 300 euros to millions of seniors to help them cover rising power bills, alongside a smaller one-time transfer of 200 euros for students, and a heating cost payment for people receiving housing benefits.
This is Germany’s third relief package since the beginning of 2022. The two previous packages (which amounted to €30bn) included a gasoline rebate, which expired at the end of August, the nine-euro transportation ticket and an energy price flat payment to workers.