Germany is discussing subsidies to help citizens affected by the energy crisis as European governments seek to curb rising fuel prices and maintain voter support for sanctions against Russia.
The ruling coalition of the Social Democrats, Greens and the Free Democratic Party weighs in at a subsidy of between € 20 ($ 22) and € 50 a month, with the highest payments going to the lowest-income social groups, Bild am Sonntag reported. . High-income households will be excluded.
The money would be paid for at least three months and would cost the government 1 billion euros a month, according to the report. It is unclear whether the FDP, the coalition’s smallest partner, will agree to the proposal, the report said.
FDP’s top politician, Finance Minister Christian Lindner, had earlier proposed petrol cuts to help workers, an idea rejected by some members of the coalition. Lars Klingbeil, co-leader of the Social Democrats, told Bild am Sonntag that he was against general support, but in favor of targeted assistance to lower-income groups, which should also cover some of the rising costs of heating and electricity.
Economy Minister Robert Habeck of the Greens had earlier said the country could expect some form of financial assistance for migrants to ease the burden of higher fuel prices, but that may not be as simple as a fuel discount. Friedrich Mertz, leader of the main opposition Christian Democrats, told Tagesspiegel that a non-bureaucratic way to help would be to cut energy and petrol taxes.
Germany on Wednesday approved 4.5 billion euros in tax cuts for consumers and is discussing further aid, while French Prime Minister Jean-Castex has introduced new measures, including subsidies for energy-intensive businesses estimated to cost around € 3 billion.
Greece, meanwhile, will provide benefits to low-income retirees and other vulnerable groups, while Portugal has reduced its fuel tax and offered a € 400 million credit line for affected industries.
Source: Capital

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