Germany announces €65bn package to curb soaring energy costs

German Chancellor Olaf Scholz has announced a €65bn (£56.2bn) package of measures to combat the threat of rising energy costs in the coming months.

The package, much bigger than two previous ones, will include one-off payments to the most vulnerable and tax breaks to energy-intensive businesses.

Countries across Europe are considering similar measures.

Energy prices have soared since Russia invaded Ukraine, and Europe is trying to wean itself off Russian energy.

Two days ago, Russia said it was suspending gas exports to Germany through the Nord Stream 1 pipeline indefinitely.

But the stand-off with Russia has forced countries like Germany to find supplies elsewhere, and its stores have increased from less than half full in June to 84% full today.

Mr Scholz told journalists Germany would get through the winter, adding that Russia was "no longer a reliable energy partner".

He said the government would make one-off payments to pensioners, people on benefits and students. There would also be caps on energy bills.

Some 9,000 energy-intensive businesses would receive tax breaks to the tune of €1.7bn.

A windfall tax on energy company profits would also be used to mitigate bills, Mr Scholz said.

The latest package brings the total spent on relief from the energy crisis to almost €100bn, which compares to about €300bn spent on interventions to keep the German economy afloat during the Covid-19 pandemic.

And EU energy ministers are due to meet on 9 September to discuss how to ease the burden of energy prices across the bloc.