Germany

Package of federal measures to secure an affordable energy supply and to increase income

Executive

Programme

Passed in 2022

In order to mitigate the financial impact of the sharp rise in energy costs on people and the economy, the federal government launched three relief packages with a total volume of around 95 billion euros to provide relief and social support. The third relief package was presented by the coalition parties on September 4. It includes short-term aid, housing benefit reforms, tax measures and structural changes to dampen energy price developments. A separate package of measures also supports companies that are affected by the sanctions or the war.

The package has a component on the extension of the housing benefit entitlement, introduction of a heating cost and air conditioning. The housing allowance will be reformed on January 1, 2023. It will contain a permanent climate component and a permanent heating cost component in order to better cushion the rising energy prices. In addition, the circle of people entitled to housing benefit will be expanded to two million.

Besides, the planned increase in the CO2 price of five euros per ton in fuel emissions trading on January 1, 2023 will be postponed by one year to January 1, 2024. This means that the follow-up steps previously planned for 2024 and 2025 will also be postponed by one year. In order to enable further reductions in CO2 emissions in the transport sector, an additional EUR 500 million and EUR 1 billion in commitment appropriations will be made available in the 2023 budget of the Federal Ministry for Digital Affairs and Transport for the railways.

A nationwide public transport ticket is to be introduced to follow the time-limited 9-euro ticket . The responsibility for local public transport lies with the federal states and municipalities. The Confederation supports them in this, among other things, through the regionalization funds. The federal government is willing to provide the federal states with an additional 1.5 billion euros annually for a nationwide local transport ticket if the federal states make at least the same amount available. The transport ministers of the federal and state governments will soon develop a joint concept for a nationwide, digitally bookable subscription ticket.

Documents

Link to full text (PDF) (German)