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New ‘massive relief package’ in Germany

It was announced by Chancellor Soltz together with Minister of Finance Lindner and Minister of Economy and Energy Hambeck. Initial calculations speak of 30-40 billion euros.

Wanting to send an image of unity and solidarity in the German government, which has long been marked by divergent tendencies and major disagreements in key areas related to dealing with the energy crisis, Chancellor Olaf Solz presented from the Messeberg Tower in Brandenburg the main lines of the third relief package.

All the details will be worked out “soon”, he said, describing the nature of the new relief package as “targeted and tailored” to help citizens and businesses emerge unscathed from the difficult winter ahead.

Many billions of euros

Liberal Minister of Finance Christian Lindner spoke of a “massive relief package” at the joint press conference with the chancellor and the Green Minister of Economy and Energy Robert Hambeck, estimating its amount at several billion euros until next year, with the its co-financing gradually from resources of both the federal budget and the states.

According to estimates by the television network n-tv, the total amount of relief that will be included in the third package could range from 30 to 40 billion euros – it should be noted that the first two support packages amount to 30 billion euros.

For Robert Hambeck, it is important to take immediate measures to limit the skyrocketing of energy prices. He stressed, however, that Germany “is well prepared for the winter” with natural gas reserves at good levels (around 80%). The German co-government announced from Meseberg soon the establishment of rules for the restructuring of the electricity market by decoupling it from natural gas prices.

What is expected to be included in the third package

In any case, the third package focuses mainly on aids and benefits, with the German government reaching deep into its pockets to support broad social groups that are hit hardest by the energy crisis and high inflation. n-tv citing government circles already gives a first insight into the measures that were put on the table of the ministerial conference in Meseberg:

– One-off energy allowance for low and medium incomes between 800 and 1500 euros

– Housing allowance combined with heating allowance

– Additional lump sum child benefit

– Additional aid for low pensioners, beneficiaries of social benefits and students

– Financial assistance or loans with favorable terms for small and medium enterprises

On the Greens’ proposal to impose a tax on the profits of energy companies, the Liberals are still raising objections. But it seems that the coalition government – and Christian Lindner – agree that limits should be put in place to stamp out profiteering by some energy companies, which appear to be profiting from the uncertainty in the energy market.

Dimitra Kyranoudis, Berlin

Source: Deutsche Welle

Source: Capital

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