Weekly Updates from the German Federal Parliament (Bundestag)

In a bid to ease the financial burden on citizens, especially in the face of rising inflation and energy prices, the German government has proposed a comprehensive package of relief measures. The centrepiece of this package is a one-time relief payment of €300 per typical family [1].

This relief payment, part of a broader package worth around €30 billion, also includes fuel tax cuts, child support add-ons, reduced public transport fares, and subsidies for energy-efficient home improvements [1]. The aim is to provide direct financial relief to families, with a typical family of four expected to benefit by about €300 annually compared to previous years due to these combined measures, including the elimination of the EEG surcharge on electricity bills [1].

The relief amount focuses on immediate compensation to ease the burden caused by inflation and the energy cost hike. Other aspects of the package, such as the fuel tax cuts and subsidies for energy-efficient home improvements, are designed to address longer-term issues related to energy costs and climate neutrality.

The German government's relief package is a response to the challenges posed by inflation and energy price shocks in 2022-2025 [1]. The details provided are based on the legislative actions and fiscal policies the German government has enacted or proposed.

Meanwhile, other legislative actions are underway. For instance, the Wohngeld-Plus Act, a draft bill submitted by the SPD, Bündnis 90/Die Grünen, and FDP, is being concluded this week by the Bundestag. The bill aims to reform and modernize housing allowance rules, with the goal of reaching around two million households by 2023, instead of the current approximately 600,000 [2].

The governing factions are also advocating for fair climate finance, pushing for the federal government to ensure that donor countries increase their contributions to international climate finance to reach the target of $100 billion annually by 2023 [3]. They are also calling for a federal government climate foreign policy strategy that ensures coordinated cooperation among relevant ministries, defines climate foreign policy goals, and integrates social, security, and geopolitical aspects of the climate crisis [4].

References: [1] German Federal Government (2022). Inflation Compensation Act. Retrieved from https://www.bundesregierung.de/breg-de/themen/inflationsausgleichgesetz-1876746 [2] German Bundestag (2022). Wohngeld-Plus Act. Retrieved from https://dip21.bundestag.de/dip21/btd/19/093/1909307.pdf [3] German Government (2021). Climate Finance. Retrieved from https://www.bmub.bund.de/en/climate-finance [4] German Government (2021). Climate Foreign Policy. Retrieved from https://www.auswaertiges-amt.de/en/aamt/themen/klimapolitik/climate-foreign-policy/2530986