All decisions of the Federal Council: fuel discount – 9 euro ticket – electricity price reduction

All decisions of the Federation Council
Tank discount, €9 ticket, electricity price reduction

Energy prices are rising and traffic lights are controlled: the Federal Council votes on the relief package aimed at helping citizens during the crisis: there are special discounts for traffic and electricity costs.

Finally, the Federal Council discussed and approved several legislative projects for the Traffic Lights Coalition to ease the burden on citizens. These measures aim to achieve financial exemption in the areas of taxes, energy, and transportation, and to ease the burden of families and the poor. The plans in detail:

300 euros fixed price for energy for workers

Employees and self-employed people receive an additional €300 due to increased business travel costs. The so-called fixed energy price will be transferred with salary in September or October. Self-employed should be able to deduct the flat rate from the September tax advance payment.

tax cuts

Retroactive to January 1, the basic income tax allowance will be increased by 363 to 10,347 euros, the travel allowance for more than 21 kilometers will increase from 35 to 38 cents per kilometer and the income allowance will be increased from 1,000 to 1,200 euros. These changes result in a lower income tax deduction.

9 euro ticket

In June, July and August, all citizens can use buses and trains for nine euros per month. The sale of cheap monthly tickets is starting these days. It applies to local and regional transport, not to long-distance trains such as ICE, EC or IC.

Reduce the price of fuel

In parallel with the €9 ticket, the very high fuel prices will be reduced from June to August by lowering the energy tax. Gasoline could be made cheaper by about 35 cents a liter and diesel by about 17 cents a liter.

Reducing electricity prices

After more than 20 years, the so-called EEG tax will no longer apply from July. It was introduced in 2000 to fund the promotion of wind or solar energy systems. Customers pay tax on their electricity bill. The price is currently still 3.72 cents per kilowatt-hour. Experts do not expect electricity prices to fall as a result of the cancellation, but at least mitigate the sharp increase.

More money for the needy

Anyone who depends on financial assistance from the state gets more money: recipients of social assistance or unemployment benefit II receive a one-time payment of 200 euros in July, and for children in poor families, monthly payments increase by 20 euros from July. Unemployment benefit recipients I also receive a one-time payment of €100.

child reward

There must be a child allowance of €100 for each child for whom the child allowance is paid. These additional payments are already in place in Corona 2020 and 2021. The payment is made automatically and is expected to come in July.

Two Laws of Energy Security

The state assembly also approved two laws on energy security that, according to the Greens, Federal Economy Minister Robert Habeck, “cannot be overemphasized.” The background is the Russian attack on Ukraine.

The law aims to speed up the construction of floating and fixed LNG terminals by allowing authorities to temporarily omit some procedural steps, notably environmental impact assessments. The project aims to reduce Germany’s dependence on Russian gas.

The Energy Security Act reform also states that the state will have easier access to energy companies in the future if there is a risk of major supply bottlenecks. If there is a “concrete risk” that a company will not carry out its duties and there is a risk that the security of supply will be poor, the amended law can temporarily place it under guardianship. As a last resort, the possibility of expropriation is created.

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