Germany agrees €65bn package to fight inflation

The German government has agreed on a third package of measures, which is designed to protect the population and businesses from the impact of soaring inflation, transmits Reuters with a link to the document. Germany will spend 65 billion euros for these purposes, more than in the first two packages.

The authorities in Germany, as part of a new aid package, have planned to provide discounts on public transport and tax incentives in the amount of 1.7 billion euros for 9,000 energy-intensive companies, follows from the document.

The third package of measures was agreed in view of high energy prices. German Chancellor Olaf Scholz at a press conference declaredthat the adoption of all three packages will cost 95 billion euros, writes Spiegel. The document notes that the package will “unload all households – including retirees, students and interns.” The planned measures include a one-time payment of 200 euros for students and 300 euros for pensioners.

Gas prices in Europe accelerated growth after Gazprom’s announcement that the last gas pumping turbine would be stopped for scheduled work from August 31 to September 2, last week the price of the nearest gas futures exceeded $3,500 per thousand cubic meters. On August 29, after Germany announced the early filling of gas storage facilities, they fell by more than 20%, to $2,802.

On August 19, it became known that producer prices (PPI) in Germany rose by 37.3% in July compared to the same period last year. This was the highest figure since the start of settlements in 1949. Inflation in Germany in August accelerated and previously amounted to 7.9% compared to the previous year.