Video: Federal government plans “double boom” against high energy prices

STORY: Inflation in Germany increased massively in September and has climbed to its highest level since the early 1950s. After the elimination of the 9-euro ticket and the tank discount, goods and services cost an average of 10.0 percent more than a year earlier, as the Federal Statistical Office announced on Thursday in an initial estimate. Economists polled by Reuters had only expected an increase to 9.4 percent, after 7.9 percent in August. The Ukraine war has pushed up the cost of raw materials and food enormously, but especially that of energy. In order to curb gas and electricity prices, the federal government has decided on a credit-financed protective shield in the amount of 200 billion euros. The gas surcharge, which was supposed to come into force on October 1, is no longer needed, said Chancellor Scholz. Instead, there should be a gas price brake. “I once said on another occasion: The measures that we are taking are a bang. You can say that this is a double bang here. It should help prices to drop quickly, quickly and quickly for everyone to see for energy, so nobody has to worry when they think about autumn, about winter.” Federal Finance Minister Christian Lindner spoke of an energy war against which one is defending oneself. “That is a crystal clear answer to Putin. But it is also a crystal clear direction to the people in our country. We are economically strong and we mobilize this economic strength when it is necessary.” Federal Minister of Economics Robert Habeck warned that the situation was still critical. “Yes, it’s like the Chancellor said: the storage tanks are full. But we also see that consumption, especially in the private sector, is not yet falling to the extent that it would actually be necessary. That’s why, with all willingness, now spending a lot of money and cushioning the prices: the need to save energy remains unabated.” According to the Greens politician, the program that has now been decided should run until the end of the winter after next. His FDP cabinet colleague Lindner said the money was not available for further demands from the federal states.

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