Inflation: train at €9, wages increase … How other European countries are responding to higher prices

Eurozone inflation broke a new record in May of 8.1% in one year. Therefore, European countries, such as France, have implemented various purchasing power measures to help families. In addition to the fuel deduction, which many countries favor, the boosts center around checks and salary increases. Overview.

Germany: unlimited train for 9 euros per month and check out 300 euros

Months passed, and prices rose steadily in Germany, where inflation peaked in May at 7.9% over one year (a 0.5 point increase compared to April), unheard of since the 1973 oil shock. And so Olaf Schulz’s government decided to act. Quickly and aggressively, by releasing 30 billion euros of relief to families in the face of rising prices, especially exacerbated by the war in Ukraine.

Its latest measure at the beginning of June has been successful, to the point of saturating the railway network: a flat rate of €9 per month to allow Germans to board regional trains whenever they want until the end of August. Berlin also introduced a fuel rebate of 30 cents per liter for gasoline and 14 cents for diesel.

Families are not excluded, with a €300 check for all taxable employees, while the most modest families will be given an extra €100 help, plus a €100 bonus per child.

Italy: Fuel Discount and Energy Company Tax

Like other European governments, Italian Prime Minister Mario Draghi has also decided to put his hand in his pocket in the face of inflation affecting Italy and approaching 7% in one year in May. The government released 30 billion in two phases, in particular to finance a bonus of 200 euros intended for 28 million Italians with a total income of less than 35,000 euros per year.

The 30-cent reduction in tax per liter of fuel, which took effect from the beginning of April, has been extended until July 8 and revolves around a 25-cent reduction in production duties (a tax levied on the sale or use of products such as alcoholic beverages, tobacco products, and energy products) And a reduction of about 5 cents in value-added tax. It is partly financed by a tax on “excess profits” for companies in the energy sector, which has just been increased from 10 to 25%.

UK: £400 check to pay gas and electricity bills

Increase wages, help the most humble. This is how the British government intends to respond to the explosive inflation in the UK, which reached 9% in one year in May.

Thus, the government released 15 billion pounds (17.5 billion euros) after nine billion in February which will allow all families to receive 400 pounds (466 euros) to pay their gas and electricity bills for 2022. Eight million poor families will receive an additional 650 pounds (760 euros), Retirees will also be compensated.

Like Italy, the UK intends to finance part of these measures with a set tax of 25% on the profits of the oil giants. Finally, the minimum wage has also been increased.

Spain: Increased minimum income and tax cuts

Inflation reached 8.7% in one year in May, 0.4 points higher than in April. The Spanish government has decided on a €6 billion plan of direct aid that includes fuel subsidies, an increase in the minimum subsistence income, and an extension of tax cuts aimed at lowering electricity bills. The fuel discount is 20 euro cents per liter: it is financed by the state (15 cents) and oil companies (5 cents).

At the same time, Madrid secured an agreement with Lisbon from Brussels to lower the price of gas used to produce electricity in the Iberian Peninsula and ultimately lower consumer bills, under a temporary devaluation regime.

Increasing salaries in Greece, lowering the value-added tax on electricity in Belgium

Several European countries have adopted a temporary discount on fuel, according to the Bruegel Institute, which lists national responses to inflation in Europe. In Greece, the government raised the Greek minimum wage by 50 euros, to a total of 713 euros per month, while Belgium specifically gave each family a 100-euro energy check, as well as reducing the value-added tax on electricity by 21% to 6% as of March . Until July. Estonia, which had an inflation rate of 20% in one year in May, decided to freeze electricity and gas prices.

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