Germany comes with a € 96 billion emergency package to help consumers and small and medium-sized businesses pay their rising energy bills. This year they will receive a one-off amount equal to the costs for one month of gas consumption.
There will also be a mechanism to limit the price of gas starting in March, encouraging households and businesses to consume less.
The cost of the plan comes from a 200 billion euro package announced last month by the government to mitigate the impact of the skyrocketing energy prices. Experts believe Germany will have to cut its energy consumption by a fifth to get through the coming winter and subsequent years without rationing.
German inflation reached its highest level in more than a quarter of a century at 10.9 percent in September. The price increases are mainly the result of higher energy costs. Rising energy prices are putting further pressure on German Chancellor Olaf Scholz to address the cost of living.
Other countries, including the Netherlands, have recently announced various plans to help citizens and businesses with their energy bills. Gas and electricity prices have recently increased significantly in Europe. This is partly due to the Russian invasion of Ukraine. Russia is a major supplier of mainly gas.
