Germany’s parliament on Friday approved a government proposal to provide up to 200 billion euros in subsidies to ease the shock of the jump in energy prices for households and businesses. The lawmakers gave their approval for a federal stabilization fund to raise the funds, as well as for an exemption from a rule that imposes severe limits on the increase in public debt.
In a message on Twitter, German Chancellor Olaf Scholz said the decision was “good news for everyone who looks at the costs of their services with concern, and for small businesses and businesses”.
Details of the plan’s implementation, which is expected to extend through 2024, have yet to be finalized.
Some European Union (EU) countries said the bloc’s biggest economy should have coordinated the initiative with its partners and expressed concern that the plan would boost prices elsewhere.
Scholz has defended the plan on more than one occasion and insisted that Germany is showing solidarity with the rest of Europe.
In a speech to the German parliament ahead of an EU summit that began on Thursday, the chancellor said the plan equates to 2% of Germany’s Gross Domestic Product (GDP) over a two-year period and quite.
“This is the magnitude of packages that have been and are being developed in other parts of Europe this year – in France, Italy or Spain, for example,” Scholz said.
Source: CNN Brasil
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