The support package is being introduced to compensate for the rapid cost increases that have hit the country’s households in recent months, not least when energy bills have skyrocketed due to the declining gas supply from Russia.
“Both households and businesses must have access to appropriate support after the burden they have suffered due to high energy prices,” the German government coalition said in a joint statement.
The announcement comes a day after Russia’s Gazprom extended the stoppage of gas deliveries through the Nord Stream 1 pipeline indefinitely.
The support package includes, among other things, a one-off grant of 300 euros to the German pensioners, while students receive 200 euros instead. People eligible for housing benefit will receive a one-off grant of €415 in an attempt to offset rising heating costs.
Betting on a cheap monthly ticket
The government is also earmarking 1.5 billion euros to develop the monthly ticket which, during the summer, has enabled German travelers to travel on local and regional transport networks across the country for only nine euros.
The ticket was part of efforts to reduce dependence on Russian gas and oil, by increasing public travel.
Germany is one of the countries in the EU that was previously most dependent on Russian energy. Among other things, before the war, Russia accounted for more than half of German gas imports, half of coal imports and just over a third of oil imports. The German government has agreed on a support package of 65 billion euros for German households. Michael Kappeler/AP/TT The German government has agreed on a support package