Germany’s coalition parties agreed to a €65 billion package to shied consumers and businesses from energy price hikes on Sunday. The package will be paid for via an energy windfall tax and bringing forward a planned 15% global minimum corporate tax.
Energy prices are likely to spike further on Monday after Gazprom announced that Nord Stream 1 would stay shut after maintenance.
The costs of the package could rise with energy prices. So far the government has spent €95 billion on subsidies since the Ukraine war began in contrast to about €300 billion during the pandemic.
In other German news that could impact markets, the Green party announced it will stop opposing nuclear power. That should clear the way for an extension of Germany’s three remaining plants.
