The cabinet reacts to the rising energy prices. The coalition leaders agreed in the evening to bring forward the increase planned for January 2024.
According to Finance Minister Christian Lindner, the traffic light coalition will save citizens billions in the face of skyrocketing energy prices. “We don’t leave people alone in the current situation,” said the FDP chairman on Wednesday in Berlin after deliberations by the coalition committee. The abolition of the EEG surcharge alone, which was brought forward to July 1, amounts to around 6.6 billion euros.
The heads of the coalition parties had previously agreed on several measures to relieve consumers. The commuter allowance is to be increased from 35 to 38 cents per kilometer retrospectively from 1 January 2022 from the 21st kilometer.
In addition to the elimination of the EEG levy on electricity as of July 1, a special subsidy for adult Hartz IV recipients of a one-off amount of 100 euros and an immediate surcharge for poor children of 20 euros a month from July are planned.
Taxes: Employee lump sum is increased
Several tax measures were also agreed: the basic income tax allowance is to increase for the current year from 9,984 euros to 10,347 euros, and the employee allowance from 1,000 euros to 1,200 euros.
The Greens Chairwoman Ricarda Lang said that people now have to be relieved in a short-term and targeted manner. We agreed on ten steps. “It’s a strong package that we have to offer society as a whole, and I think it offers a form of security anchor for the people of this country, especially in difficult times.” SPD Chairwoman Saskia Esken emphasized: “It is important to us that life’s basic needs remain affordable.”
Source: Stern
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