Chancellor Friedrich Merz unveiled a relief package aimed at helping ordinary Germans and the country’s industry, focusing on direct daily support amid rising energy and fuel prices. The plan lowers the mineral oil tax on diesel and petrol by about 17 cents per liter for two months, providing immediate relief for commuters, workers, and small logistics businesses.
The government also highlights support for the German automotive sector and rejects ideological bans, advocating a path of technological progress. Merz stressed that there should be no abrupt setback for essential technologies and that Brussels discussions should proceed with full openness to renewable fuels and biofuels of all kinds. This approach aims to safeguard thousands of jobs in one of Germany’s key industries. The policy is framed as a prudent, temporary measure that avoids overburdening the state budget while absorbing price spikes. In addition, a tax-free relief premium of up to 1,000 euros will encourage companies to support their employees. The government says reforms will continue to ensure social insurance revenue covers expenditures, protecting jobs and the reliability of health and pension benefits.
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