Germany decides to use the huge profits of energy companies to ease the financial burdens of families

The German chancellor, Olaf Scholz, announced that Germany wants to use the exceptional profits obtained by some energy companies thanks to the high market prices, to alleviate the financial burdens of families.

The German government indicated in a document that it includes a new and enormous aid plan against inflation, which will require the inclusion of the measure “withdraw part of the exceptional profits” obtained by these companies to be applied within the framework of the European Union, indicating at the same time that it is ready to apply it at the national level.

At a press conference today, Sunday, the German chancellor lamented that “producers simply benefit from the extremely high gas prices on the basis of which the price of electricity is determined.”

On Sunday, the German government unveiled a multibillion-euro plan to ease the financial burden on families amid falling Russian gas supplies and rising energy bills, and said it was considering using part of windfall profits made by energy companies to support financing. of the plane

The Berlin reform is different from the taxation of extraordinary profits of energy groups, which has been decided by some governments in Europe, said Finance Minister Christian Lindner.

Lindner, the leader of the Liberals, a staunch opponent of the fiscal principle, added that the government had discussed this “controversial idea, but there are constitutional reservations about it.”

The same source stressed that the matter is not “a source of income that can be planned and that allows a rapid reduction” of family expenses.

The word “tax” was not used, but it is a compulsory contribution that will be imposed on companies operating in the energy sector with the aim of reducing electricity prices paid by families and companies.

The Finance Minister indicated that this mandatory contribution could generate “tens of billions of euros.”

Germany, like all countries in the European Union, is facing a sharp rise in electricity prices and concerns about energy supply due to the depletion of Russian gas on which its industry in particular depends.

Schulz stressed that Germany, despite the prolonged closure of the Nord Stream gas pipeline connecting Russia with northern Germany, “will be able to weather this winter.”

“Russia is no longer a reliable supplier of energy … and the federal government has been preparing for this possibility since the beginning of the year,” he said, noting that thanks to the diversification of supply sources, the restart of plants at coal and the filling of gas reserves, the country is in a position to face the coming months.