Germany announces €65bn package to curb soaring energy costs

Image source, Reuters

A package of measures has been announced by the Chancellor of Germany.

One-off payments to the most vulnerable will be included in the larger package.

Similar measures are being considered by many countries in Europe.

The price of energy has gone up since Russia invaded Ukraine.

Russia said it was suspending gas exports to Germany through the pipe.

Germany's stores have increased from less than half full in June to almost full today because of the stand-off with Russia.

Ukrainian President Volodymyr Zelensky says Russia is trying to destroy the life of European citizens.

Russia is no longer a reliable energy partner according to Mr. Scholz.

The government will make one-off payments to people. The caps on energy bills would be in place.

Businesses that are energy intensive would get tax breaks of 1.7 billion.

There would be a windfall tax on energy company profits.

The latest package brings the total spent on relief from the energy crisis to almost 100 billion, compared to about 300 billion spent on interventions to keep the German economy afloat during the Covid-19 epidemic.

If she becomes prime minister on Tuesday she will announce a plan to deal with energy costs within a week.

EU energy ministers will meet in September to discuss how to ease the burden of energy prices.