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Germany takes on energy bills amid rising gas prices

Germany takes on energy bills amid rising gas prices

The air is warm and buttery as the workers in the Kexerei in Dresden knead mountains of raisin dough. It's the busiest time of year, but like every other business and household in the country, bills are mounting and spoiling the holiday spirit. "Wages have risen drastically, energy costs have risen, as have the prices for our ingredients - butter has doubled," says owner Matthias Walther. "I can't pass all of that on to the customers." A topic that also concerns the German government. Fearing the impact on the economy, she is spending around 300 billion euros ($310 billion; £260 billion) on measures to protect people and industry from higher prices, particularly soaring energy bills. A third of this sum has already been spent, and a further 200 billion euros are to be added in the coming months. Perhaps most notable is the promise to pay a monthly gas bill for all households and small businesses in December. In practice, this will not cover the full cost; the amount is calculated based on an average monthly bill for September. Benefits have increased, and almost everyone has received a one-time payment of €300. And from January gas and electricity bills will be capped. Government subsidies enable households and small businesses to pay a lower tariff for 80% of their gas consumption and 70% of their electricity consumption.

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