-- The coalition government in Germany, headed by Chancellor Friedrich Merz, will provide 1.6 billion euros ($1.9 billion) in fuel price relief to German consumers to mitigate the impact of surging energy prices, according to media reports on Monday.
The government will reduce the energy tax on diesel and petrol by about 0.17 euros per litre for two months, the reports said, citing comments made during a press conference held by Merz, the conservative CDU party and its centre-left coalition partner SPD in Berlin on Monday.
The coalition partners appeared to be in disagreement over how to tackle rising oil prices last week, with Economy Minister Katherina Reiche criticizing a proposal by Finance Minister Lars Klingbeil to tax the windfall profits made by companies, Reuters reported.
However, tensions seemed to have eased between the partners after talks over the weekend, the report said.
Merz, who is skeptical of the windfall tax proposal, said the government will wait to hear from the European Commission, which is reviewing such measures, according to a Bloomberg report.
The Middle East crisis and the resulting energy supply shocks have complicated the situation for the coalition, which is aiming for an overhaul of the country's economy this year, Bloomberg said.