Money to students, pensioners, unemployed people and families: Germany’s 65 billion euro plan against expensive energy

Italy is suffering greatly from the effects of energy crisisbut if there is a country that gives Russian gas it depends even more than ours and is therefore struggling particularly, that is Germany. For this reason, in the past few hours the German government has launched a 65 billion euro plan to counter the rises, just as the spokesman for the Kremlin Dmitry Peskov he spoke threatened a “global storm.” It is the third aid package, by value more than double with respect to the sum of first and second, of 30 billion. After hours of discussion with the three majority parties – Spd, Greens and Liberals – who make up the government, the chancellor on the night between Sunday and Monday Olaf Scholz presented the main points of the speech. There are subsidies to pensioners, families and students. And the audience of those who receive them expands. The measure, however, will not be financed with new debt, but also thanks to the extra-profits of energy companies. The document drafted states that “due to the rapid increase in energy prices, kidnapped and proportionate aid is needed for citizens and businesses”.

Subsidies to students, retirees, the unemployed and families

Among the primary interventions figure a one-time bonus for retirees and students: 300 euros for the former and 200 euros for seconds. Furthermore, the number of beneficiaries of the housing grant that will be disbursed is growing two million peoplerather than 700 thousand. The same individuals will also be entitled to help to cover heating costs: in the case of a family unit consisting of only one member, this amounts to 415 euros. The family allowancesthat they increase by 18 euros per month for the first and second child, and for theHaartz IVthe subsidy for the unemployed, the monthly amount of which passes from 449 euros to 500. News also for the public transport. Berlin has made it known that extending the validity of the single ticket from nine euros it would cost too much, however an alternative is being studied whose price should fall between 49 and 69 eurosexplains the Republic. Finally, from the document – reports the print – we also learn the intention to offer citizens of quotas of electricity at a controlled price. The move should make families spend less, and induce them to save in order not to cross the threshold.

Electricity packages at a reduced price

The powerful package has not met the favor of Bdi – the German equivalent of Confindustria – which complains of too little aid to businesses. The intervention should also have included an extension to the functioning of the nuclear power plantsthat Berlin chose to turn off slowly following the Fukushima disaster in 2011the risk «is the blackout at the beginning of winter, “said the leader of the CDU, the party of the historic Chancellor Merkel, Friedrich Merz.

Why are extra profits essential?

The big news of this package is how it will be financed: in large part by taxing the extra profits of energy companies. But what does it mean? In Europe, the price of electricity is closely linked to that of gas. A decision made when the Petroleum it cost a lot and gas little. With the dizzying increases in the price of gas due to the uncertainty of the markets regarding a possible definitive stop of Russian supplies arriving right in Germany through the duct Nord Stream 1, the price of electricity has also grown, but not in proportion to the cost of production. In fact, gas is only one of the many sources that are used to obtain electricity. And if gas and oil are particularly expensive right now, the same cannot be said of renewables and nuclear power. This means that even electricity produced without using hydrocarbons is paid a great deal, guaranteeing huge profits to the companies that deal with it. And it is precisely these earnings monstre which have been going on for months, which the German government has decided to tax.

Gas reserves are full, but inflation is high

The plan comes when Germany has already reached the goal that it had set for October 1, that is to reach the‘85% the level of gas reserves. A fact that allows a Scholz to affirm that the country “is in any case equipped to face the winter”. The measures are also necessary in light of the rampant inflation that devours the value of citizens’ savings. At the moment it is al 7.9% but economists predict that double digits will be reached by the end of the year.

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