Germany’s US$64.7 billion support package to help consumers with cost of living

The latest agreement brings the country’s total relief to almost 100 billion euros since the start of the Ukraine war

Higher energy prices are expected to push inflation in Germany to around 10 per cent by the end of the year, its highest in decades

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German Chancellor Olaf Scholz (left) and Finance Minister Christian Lindner attend a news conference on the results of the Coalition Committee, announcing a new package of relief measures to counter rising energy prices, at the Chancellery in Berlin, Germany on September 4. Photo: EPA-EFE

Published: 7:54pm, 4 Sep 2022

Faced with a cost-of-living crisis making it impossible for some households to cope, the German government on Sunday announced a package of more than €65 billion (US$64.7 billion) to help residents with skyrocketing energy costs and inflation.

“We will get through this winter,” said German Chancellor Olaf Scholz at a press conference after talks that went through Saturday night and into Sunday morning.

He added that Germany is going to benefit from the decisions it has made up until now, as it comes to grips with the lingering fallout of the pandemic and the economic crunches on food and energy supplies resulting from the Ukraine war and subsequent moves to cut off fuel exports to Europe.

German Chancellor Olaf Scholz, co-leader of Germany’s Green party Omid Nouripour and Germany’s Free Democratic Party (FDP) leader and Finance Minister Christian Lindner address the media after a coalition committee of SPD, Greens and FDP parties about new package of relief measures to counter rising energy prices. Photo: Reuters

The latest agreement, which brings total relief to almost 100 billion euros since the start of the Ukraine war, was hammered out overnight into Sunday by Germany’s three-way ruling coalition of Scholz’s Social Democrats, the Greens, and the liberal FDP.

Speaking alongside Scholz were Omid Nouripor of the Greens and Finance Minister Christian Lindner of the FDP. Those two parties are in the three-party governing coalition along with Scholz’s Social Democrats.

All three emphasised national solidarity in the current circumstances. “Germany stands as one in a difficult time,” Scholz said.

“We won’t let ourselves be divided,” Nouripour added. “We’ll do our part to make sure we live through a winter of solidarity.”

Lindner added that “we’re doing everything in our power to get through this shortage situation.”