Scholz pledges 65 billion euros to protect Germans during the bitter winter

Olaf Scholz, the chancellor of Germany, announced on Sunday that the country will spend at least 65 billion euros ($64.7 billion) to protect consumers and businesses from skyrocketing inflation. This comes two days after Russia announced that some gas deliveries would be suspended indefinitely.

 

After 22 hours of negotiations, the three coalition parties came to an agreement on a package of measures that included benefit increases, a public transportation subsidy, and an early implementation of Germany’s proposed 15% global minimum corporate tax.

 

Inflation around the globe and warnings of social and economic unrest as the world weans itself off of cheap energy and adaptable global supply lines have been caused by Russia’s invasion of Ukraine in February.

 

The effect has been exacerbated by Russia’s reduction in gas supplied to the country, which has prompted a rise in the price of energy sustaining Europe’s largest economy in Germany, where year-over-year inflation was running at 7.9% in August.

 

Scholz stated at a news conference that ‘Russia is no longer a reliable energy partner,’ adding that Germany would survive the winter heating season due to early preparations.

 

Due in part to corporate consumers reducing consumption, gas stations reached 85% of their capacity on Saturday, about one month earlier than expected.

 

However, he added that even though supplies were enough, the government would still need to help protect consumers and businesses from the higher prices.

 

He continued in English, reciting a hymn that Liverpool supporters of the English soccer team famously adopted: ‘You’ll never walk alone.’

 

When Russia’s state-controlled energy giant Gazprom announced on Friday that it was keeping closed its main Nord Stream 1 pipeline, the largest individual pipeline supplying Russian gas to Germany, the energy crisis became even more apparent.

 

Scholz rejected claims that the loss of the consistent supplies of cheap Russian gas on which Germany has relied to develop for decades could signal the beginning of a new, darker era for his nation.