Germany plans €13bn package to ease inflation impact

the package of Germany to help citizens and businesses deal with rising inflation will be 13 billion euros this year, with the federal government contributing 12 billion, the Ministry of Finance said on Wednesday (7).

With one inflation up 7.9% in August year-to-date, Germany is under pressure to provide more help to consumers and businesses hit by a rise in fuel prices. energy .

Aid for 2023 will be around 42.5 billion euros, of which 24.6 billion euros will come from the federal coffers, according to a ministerial breakdown of the package, announced on Sunday.

A one-time payment of 300 euros for retirees is expected to consume almost half of the promised relief for 2022, worth 6 billion euros, while energy-intensive companies would receive a total of 3 billion euros this year and next, the document showed.

Around 7.5 billion euros in 2022 and 2023 will go towards reducing taxes on natural gas revenue and 10.1 billion, most of the allocated funds, will be dedicated to offsetting inflation.

A discounted public transport ticket, a successor to the popular €9 ticket offered this summer, will cost €3 billion next year.

The ministry said the breakdown did not yet include the financial effects of postponing a CO2 price increase, an agreed electricity price cap or the dampening of rising grid charges, which would amount to more than 10 billion euros.