Germany To Spend €65B To Support Citizens And Businesses

According to German Chancellor Olaf Scholz’s statements, Germany would spend €65 billion to support its people and businesses in the face of excessive inflation. The ruling coalition’s three parties have reached an agreement on a package of economic assistance.

According to Reuters, the measures include backing a new tax on superprofits made by energy companies that profit from the high cost of energy resources. This tax is now being negotiated at the level of the European Union.

Tax revenue would be used to fund public transportation and pay for electricity. According to Reuters, who cited a government document, €1.7 billion of the package would be used to give tax cuts to 9,000 businesses with high energy usage.

Bloomberg notes that the German government’s plan also includes subsidies to lower energy prices as well as higher payments to seniors, students, families with children, and the unemployed. The agency stated that additional initiatives included increasing rental subsidies, prolonging a program of discounted public transit tickets, and delaying a planned increase in the cost of carbon emissions until 2024.

source: reuters.com, bloomberg.com

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