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Germany agrees on $64.7B cost-of-living support package

by Deutsche Presse-Agentur - dpa

Sep 04, 2022 - 1:44 pm GMT+3
German Chancellor Olaf Scholz, co-leader of Germany's Green party Omid Nouripour, and Germany's Free Democratic Party (FDP) leader and Finance Minister Christian Lindner address the media at the Chancellery in Berlin, Germany, Sept. 4, 2022. (Reuters Photo)
German Chancellor Olaf Scholz, co-leader of Germany's Green party Omid Nouripour, and Germany's Free Democratic Party (FDP) leader and Finance Minister Christian Lindner address the media at the Chancellery in Berlin, Germany, Sept. 4, 2022. (Reuters Photo)
by Deutsche Presse-Agentur - dpa Sep 04, 2022 1:44 pm

Faced with a cost-of-living crisis making it impossible for some households to cope, the German government on Sunday announced a package of more than 65 billion euros ($64.7 billion) to help residents with skyrocketing energy costs and inflation.

"We will get through this winter," said German Chancellor Olaf Scholz at a press conference after talks that went through Saturday night and into Sunday morning.

He added that Germany is going to benefit from the decisions it has made up until now, as it comes to grips with the lingering fallout of the pandemic and the economic crunches on food and energy supplies resulting from Russia's invasion of Ukraine and subsequent moves to cut off fuel exports to Europe.

Speaking alongside Scholz were Omid Nouripor of the Greens and Finance Minister Christian Lindner of the FDP. Those two parties are in the three-party governing coalition along with Scholz's Social Democrats.

All three emphasized national solidarity in the current circumstances. "Germany stands as one in a difficult time," Scholz said.

"We won't let ourselves be divided," Nouripour added. "We'll do our part to make sure we live through a winter of solidarity."

Lindner added that "we're doing everything in our power to get through this shortage situation."

Measures include a new, cheaper national public transport ticket, a lump sum paid to pensioners and students, of 300 euros and 200 euros respectively to help with energy costs, an increase in benefits for people too old or unable to work, and an increase in the monthly sum paid to parents for each child – of 18 euros for the first and second child.

A payment of 300 euros to people currently in work to help with energy costs had already been agreed upon.

Furthermore, the government will introduce lower prices for a certain basic level of energy consumption, so that consumers only have to pay higher prices once they exceed this amount.

The package is aimed at "all households – also pensioners, students, technical students and apprentices," the government said in a statement.

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    KEYWORDS
    energy crisis russian gas germany olaf scholz
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