Germany wants to announce an aid package of around 40 billion euros

Chancellor Olaf Scholz’s coalition has approved an aid plan worth around €40 billion.

The federal government’s consumer protection funding is set to cover the remainder of 2022 and 2023, and the overall package will be even larger due to contributions from regional governments, the person said.

A government spokesman could not immediately be reached for comment.

The government earlier on Sunday said it would announce details of the package at 11 a.m. local time.

Germany is facing a deepening energy crisis, sparked by Russia’s decision to all but halt gas supplies through the Nord Stream 1 pipeline following the war against Ukraine and international sanctions.

The federal government has activated the second stage of its three-tier gas contingency plan and is considering relaxing several of its key energy and environmental policies to mitigate the impact, including extending the lifecycles of its nuclear and coal-fired power plants.

Soaring energy prices and Germany’s multiple policy changes in Ukraine have weighed heavily on Scholz in his first year as chancellor, with his popularity rankings plummeting.

His party has already suffered electoral defeat since Russia launched the war in Ukraine, showing how quickly inflation has become the biggest challenge facing governments across Europe.

The package is Scholz’s third since taking office less than 10 months ago. The previous two were worth more than 30 billion euros.

A likely component of the new relief is a measure presented by Finance Minister Christian Lindner at the beginning of August, which is intended to provide for tax adjustments of around 10 billion euros.

The measure would be an attempt to relieve people of what is known as “bracket creep,” where people are pushed into higher tax brackets because they get a raise to offset rapid inflation. Germany wants to announce an aid package of around 40 billion euros

Fry Electronics Team

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