Germany approves a 65 billion euro package to combat inflation

Snigdha DaluaSeptember 6, 2022

145 2 minutes read

Table of Contents

Germany approves a 65 billion euro package to combat inflation

In order to assist people to cope with rising prices, the German government on Sunday( 4th august 2022) launched a fresh multibillion-euro plan. The government claimed it was looking to energy corporations’ windfall earnings to help pay for the relief. The coalition of the SPD, Greens, and FDP has agreed to a third relief package worth 65 billion euros to combat inflation.

The Greens have placed a special emphasis on funding for local transportation and assistance for those with limited resources. The targeted assistance for the elderly and students is significant to the SPD. The FDP, on the other hand, believes that backing Lindner’s most recent tax proposals is essential. When the results were announced at the Berlin Chancellery, Chancellor Olaf Scholz (SPD) declared, “Germany is standing together during this tough period.”

The 65 Billion euro package specifically includes the following relief measures:

1. The €9 ticket will be replaced with a national alternative that will run between 49 to 69 euros per month.
2. Beginning on December 1, pensioners will get a one-time energy allowance of 300 euros, while students will receive a 200-euro payment.
3. The quantity of power required to meet their basic needs will be provided to private houses at a discounted rate. Small and medium-sized companies with utility prices are likewise subject to this.
4. In the fall, users of housing benefits will get a one-time payment for heating costs of 415 euros for a household of one person.
5. Tax relief will be provided to 48 million people.
6. The first and second child benefits will increase by 18 euros per month from 1st January. The increase will take effect in 2023–2024.
7. A new program is being implemented to benefit energy-intensive enterprises that are unable to pass on cost increases.

A 65 billion euro package to combat inflation has been approved by Olaf Scholz’s, which may aid millions of people dealing with rising costs in the midst of Europe’s worst energy shortage in decades. With any hope, this budget request might save millions of lives.