Leaders of the federal government and 16 states on Wednesday agreed on a number of key measures aimed at easing financial pressures on consumers.
“The source of these consequences and major challenges is (Russian President Vladimir) Putin’s war,” Chancellor Olaf Scholz said at a press conference.
The agreements included the introduction of a 49-euro monthly ticket, with which travelers can use local and medium-sized public transport nationwide for less.
The program is the successor to the German 9-euro ticket system that was introduced in the summer months of this year. The ultra-affordable monthly pass allows access to regional trains, subways and buses throughout Germany.
German ministers planned an “introductory phase” for the system, meaning the price for consumers would increase later.
There had been a disagreement over the financing of the €9 successor for weeks. Transport Minister Volker Wissing declared that “the way is now clear for the largest public transport tariff reform in Germany”.
Wissing said the ticket would come as soon as possible, while German news agency DPA, citing government sources, said it would be rolled out in the coming year.
Consensus on gas and electricity price brakes
Federal and state leaders also met to enact energy relief measures to help overburdened households deal with the approaching winter months, and it was decided to introduce price caps on the cost of gas and electricity.
Chancellor Olaf Scholz said gas prices would be capped at 12 cents per kilowatt hour and electricity prices at 40 cents.
According to the tank cap plan, 25,000 larger companies and nearly 2,000 hospitals and schools would benefit as early as January 1 next year.
Households and smaller businesses may have to wait until March for the price brake to take effect.
The measures will be implemented in conjunction with regulations providing for taxes on so-called deadweight gains for power producers that are benefiting from the current market instability.
As a further measure, a one-time payment for gas bills in December for households and small businesses was agreed.
Germany’s €200 billion energy relief plan: how fair is it?
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The cost of housing benefit is shared
After a long dispute over who to bear the costs, it was decided that the federal and state governments would split the bill for the planned reform of low-income housing allowances.
Federal Building Minister Klara Geywitz welcomed the agreement. “The support in coping with these costs will be able to give many people security,” said Geywitz.
The government rent subsidy would increase by an average of €190 per month and pay 1.4 million more people than before, at a cost of €5.1 billion ($5 billion).
A hardship fund would be set up for hospitals, nursing homes and social institutions, as well as some companies that cannot do without relief. 12 billion euros would be made available for healthcare and social institutions.
The question of who should bear the costs of accommodating and caring for refugees has also been resolved. The federal government announced that it would make a further 1.5 billion euros available to the states this year and next to help refugees from Ukraine.
Germany’s €200 billion energy relief plan: how fair is it?
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kb,fb/es (dpa, AFP)
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