Chancellor Scholz wants to strip energy providers of “excess profits” to support people
The German government already has made numerous announcements. “timely decisions”To avoid winter crises, is prepared to double down “change market rules” to shield citizens and companies from soaring energy costs, Chancellor Olaf Scholz said on Sunday, presenting a new €65 billion “inflation relief” plan.
“We will get through this winter,”In a press conference held on Sunday, Scholz gave assurances to the nation. “Germany stands together in a difficult time.”
Scholz stated that he was “very aware”Germans face increasing prices. The government has helped them. “takes these concerns very, very seriously.”
The third round of relief measures announced Sunday is estimated to be around €65 billion euros, and includes a one-off payment of €300 to German pensioners and a smaller one-off payment of €200 to students. The government also wants to extend the state-housing benefits program from 700,000 to 2 million people, and cut social security taxes for those with a monthly income below €2,000.
In order to fund the new initiatives, which with two previous relief packages would amount to some €95 billion, Scholz seeks to tap into “excessive profits”German energy providers. The government wants to introduce a price cap for those energy providers who produce electricity from sources such as coal, wind, solar and do not have to pay the high natural gas prices – but take advantage of spiking electricity prices.
“We are firmly determined to change the market rules in such a way that such windfall profits no longer occur, or that they are skimmed off,”The Social Democratic Chancellor made the promises.
Germany’s dependence on Russian energy imports has led to energy prices spiralling as Russia’s natural gas supply drastically decreased in the past few months. Moscow accuses Western sanctions of interfering with the maintenance and repair of gas pumping equipment. But Scholz said on Sunday that Russia can no longer be trusted as an energy supplier. Dmitry Medvedev, the former Russian president, responded by accusing Berlin that it had declared war on Russia. “hybrid war”Moscow
German inflation rose 7.9% in August. Inflation is projected to rise by 10% in Germany and Eurozone between 2022 and 2022 due to the surge in energy costs, which will be the largest increase in energy prices in recent decades.
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