Germany: 65 billion euro support measures for inflation and energy prices

Germany will set aside 65 billion euros for its third package to support consumers and businesses from the effects of inflation and high energy prices, the German government announced.

The measures, which include proposals to extend cheap public transport tickets and €1,7 billion in tax breaks for 9.000 companies hit particularly hard by the energy crisis, were agreed by the three parties in Chancellor Olaf Solz's governing coalition on Sunday .

"This is the biggest of the three support packages so far," Mr. Soltz told a press conference, assuring that the country's energy reserves will be enough for next year.

According to Mr. Scholz, the German government will use the windfall from the tax to lower final consumer prices for natural gas and oil.

Solz said the government plans to link certain social benefits to the current rate of inflation or to a rate of future estimated inflation, while allocating 1,5 billion euros in funds to offer discounts on public transport.

Earlier, it became known that the three parties participating in the governing coalition in Germany reached an agreement on the new economic support package which aims to help consumers cope with the rapid price increases.

Among other things, the government partners were discussing the provision of targeted assistance to pensioners and students, tax cuts and a measure to replace the reduced public transport ticket, which expired.

In the middle of the week, Mr. Soltz announced "an aid package that will be as effective as possible and as targeted as possible."

kathimerini.gr