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Energy lump sum and child benefit: government wants to decide on a relief package

2022-04-27T04:58:35.370Z


A one-off increase in child benefit, a flat rate compensation for energy costs: the cabinet wants to launch a billion-euro relief package. However, the support does not go far enough for the Union.


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Power line and wind turbines in Brandenburg in the evening

Photo: Patrick Pleul / dpa

A war has been raging in Eastern Europe since February, and the effects are also affecting the West.

Due to the sharp increase in energy prices, the federal government now wants to decide on a billion-euro relief package for citizens.

Economics Minister Robert Habeck (Greens) also fears weaker economic growth in Germany.

The package aims to reduce the energy tax on fuel for a limited period of three months.

Employed persons who are subject to income tax are to receive a one-time lump sum of 300 euros gross to compensate for the high energy costs.

From June, a 9-euro monthly ticket for local and regional transport will be valid nationwide for three months.

The child benefit is to be increased once by 100 euros per child.

The funds for this are included in the supplementary budget, which provides for almost 40 billion euros in additional debt.

Money should be made available to Ukraine to buy additional weapons.

Federal states and municipalities will receive two billion euros to take in and care for refugees from Ukraine.

The leaders of the coalition of SPD, Greens and FDP had agreed on the second relief package at the end of March.

A first package had already been approved in February.

Among other things, this provides for the abolition of the EEG surcharge for the promotion of green electricity via the electricity bill from July.

The Union also asked the federal government for a comprehensive relief package for the economy.

In a Bundestag motion, the CDU/CSU parliamentary group advocates, among other things, a "moratorium on burdens", tax relief and more flexible labor law regulations.

The competitiveness and sustainability of the economy must be strengthened.

The application is to be discussed in the Bundestag on Thursday.

Habeck warns of weak growth

Habeck intends to present his spring forecast for economic growth in Berlin this afternoon.

In it, he expects gross domestic product to grow by just 2.2 percent, as government circles said in advance.

In January, the federal government had still expected growth of 3.6 percent in its annual economic report.

The uncertainties caused by the war are high, according to government circles.

After two years of the corona pandemic, the war in Russia has added a new burden with “substantial risks” – especially with regard to price pressure and supply chains.

A deterioration in the current situation, especially with regard to the energy supply, could dampen economic expectations again.

In the spring projection, growth of 2.5 percent is expected for 2023.

mrc/dpa/AFP

Source: spiegel

All news articles on 2022-04-27

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