The traffic light coalition of Chancellor Olaf Scholz (SPD) wants to relieve citizens in the face of rising prices with a third support package worth more than 65 billion euros.
“Germany stands together in difficult times. As a country, we will get through this difficult time,” said Scholz on Sunday in Berlin when the results of the coalition committee’s deliberations were presented. The most important measures at a glance:
Energy flat rate for pensioners and students
Pensioners are to receive a one-off energy price lump sum of 300 euros as of December 1st. Students and trainees are to receive a one-off payment of 200 euros. A flat-rate energy fee of 300 euros had already been introduced for working people.
Lower electricity price for basic consumption
According to the will of the traffic light coalition, a reduced price should apply for a certain basic consumption of electricity in the future. For an additional consumption beyond that, the price would not be limited. The electricity price brake is to be financed by skimming off profits from energy companies.
New nationwide public transport ticket decided
The traffic light coalition wants to create a new nationwide public transport ticket. The goal is a price range between 49 and 69 euros per month. The states still have to agree to the funding. The federal government is providing 1.5 billion euros for this.
Increase in standard rates for the needy
With the planned introduction of the citizens’ allowance at the beginning of next year, the SPD, Greens and FDP want to increase the standard rates for the needy to around 500 euros. Today, single people receive basic security of 449 euros per month.
Child benefit should be increased
The traffic light coalition wants to relieve families noticeably. So the child benefit should increase significantly. At the beginning of the year, it should increase by 18 euros per month for the first and second child.
From the turn of the year, the recipients of the new basic income should receive around 500 euros a month
The increase in the CO2 price by five euros per tonne, which was previously planned for January 1, 2023, will be postponed by one year to January 1, 2024.
The leaders of the SPD, Greens and FDP had negotiated details for about 18 hours until Sunday morning. In addition to Scholz, Vice Chancellor Robert Habeck (Greens) and Finance Minister Christian Lindner (FDP) took part in the consultations. Other ministers and the heads of the three parliamentary groups and parties were also gathered in the Chancellery.
Scholz emphasized that the first two packages decided earlier in the year now total 95 billion euros. It’s about a lot of money, but the expenses are necessary.
Regarding the goal of the relief, he said: “It’s about leading our country safely through this crisis.” Many people were currently worried. “We take all these concerns very, very seriously.” Scholz emphasized again: “You’ll never walk alone, we won’t leave anyone alone.”
The Chancellor announced that excessive profits on the electricity market are to be skimmed off. He spoke of a “great and dramatic relief” on the electricity market. “So the first task is to use such chance profits to relieve the burden on the citizens.”
The resolution paper says: “In addition, possibilities of skimming off chance profits from energy companies are being discussed at European level, which in the current market situation due to the European electricity market design go well beyond the usual returns. This includes, in particular, revenue and price caps for particularly profitable electricity producers.”
Scholz blamed Russian President Vladimir Putin for the difficult situation in Germany because of his war of aggression against Ukraine.