energy crisis.  Olaf Schultz unveils a €65 billion economic rescue plan

German Chancellor Olaf Scholz said on Sunday that the German government will use extraordinary tax revenue to lower prices for end consumers of gas, oil and coal. The Prime Minister announced a program aimed at mitigating the impact of high energy prices on the population. Its value is 65 billion euros. “We’re going to survive this winter,” Schultz said.

The chancellor spoke of a new, third anti-inflation package that was approved by all parties in the ruling coalition.

“Quick and proportionate assistance to citizens and businesses is essential to rapid growth energy prices– He wrote in the document that was created after weeks of discussions between coalition partners.

The package provides, inter alia, 1.5 billion euros for public transport cuts and 1.7 billion euros for tax cuts for 9 thousand. Firms are from energy-intensive industries.

The government also intends to allocate funds from the tax on excess profits to reduce the prices of gas, fuel and coal for consumers. According to Finance Minister Christian Lindner, this source will provide “double figures of billions of euros”.

The chancellor said at a press conference that such an unusual tax would be imposed on some energy companies that benefit from higher prices. Olaf Schulz. He added that he would strive to offer such a solution at the EU level, but Germany was ready to act at the national level.

As part of the next tranche, Germany will spend 65 billion euros on, among other things, offering attractive discounts on public transport, as well as on tax breaks for nine thousand of the most energy-intensive companies. “This is the biggest bailout we’ve come up with so far,” Schultz said.

Schulz said the government plans to tie some social benefits to current or future inflation rates.

Limited gas supply

Russia is not a reliable partner for Germany. However, we will manage,” German Chancellor Olaf Schulz said during a press conference this winter. Gas has not flowed through the Baltic Nord Stream 1 pipeline since Wednesday and it is not known when it will resume its supply. Gazprom said that despite the announcements, it would not happen on Saturday, because a fault was discovered during maintenance work. According to the original announcements, the supply outage was only supposed to last three days.

The Nord Stream 1 gas pipeline is 1,200 km long and runs through it Baltic Sea, from the Russian coast near Saint Petersburg to northeastern Germany. The facility was opened in 2011 and can transport a maximum of 170 million cubic meters of gas from Russia to Germany per day.

Gas pipelines from Russia to European countriesPAP / Maciej Zieliński

Gas supplies through the Nord Stream 1 pipeline have been significantly limited since June of this year. So far, they’ve been about 20 percent. The maximum capacity of the gas pipeline. Now Gazprom has decided to completely shut down the Nord Stream 1 gas pipeline for three days, citing the need for further maintenance. The supply outage through the Nord Stream 1 gas pipeline occurred in July of this year. And then it was 10 days. Europe accuses Russian President Vladimir Putin To use gas as a political weapon.

Gazprom also announced on September 1 this year. It will completely suspend the supply of raw materials to France’s Engie. ENGIE is one of the largest energy companies in Europe. The Russian company said in a statement that the French company will not pay the full gas supplies in July.

Main image source: PAP / EPA / HANNIBAL HANSCHKE

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