Germany will spend 1.6 billion euros over the next two months to mitigate the effects of higher global fuel prices. This corresponds to almost 12 billion kroner. The news agency Reuters writes.
According to a document presented by the ruling parties CDU and SPD, the energy tax will be reduced by around 0.17 euros per liter in the coming months due to the war in Iran.
According to the government, the measure is intended to help consumers and businesses after fuel prices have risen significantly as a result of the war in Iran.
At a press conference on Monday, Chancellor Friedrich Merz said that the government is doing everything it can to deal with the problems caused by the war in Iran. For now, there is a fragile ceasefire. But peace talks between the US and Iran broke down over the weekend.
As a result of the breakdown, the US has announced that it will begin a blockade of the Strait of Hormuz to prevent shipping to and from Iranian ports. Merz, according to the AFP news agency, calls the war "the root cause of the problems in our country." However, he expects that the reduced taxes will help quickly.
- This will very quickly improve the situation for drivers and companies in the country and above all for those who - mainly for professional reasons - spend a lot of time on the roads, he says at a press conference in Berlin.
The government has also announced that companies will be able to give their employees a tax-free bonus of up to 1,000 euros - also to mitigate the effects of inflation.
However, Merz also warns that the government cannot step in and do something about all economic challenges.
- We cannot mitigate every single consequence of market mechanisms with government funds, he says.
- The state cannot absorb all uncertainties, risks and disruptions in global politics.
/ritzau/
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