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Germany weighs third relief package as fuel costs and Hormuz crisis bite

Soaring fuel costs and a prolonged Strait of Hormuz blockade could force Germany's hand. Will a third relief package be enough to shield the economy?

The image shows a poster with a train on the railway track and a few people standing nearby. The...
The image shows a poster with a train on the railway track and a few people standing nearby. The text on the poster reads "The American Jobs Plan Will Expand Affordable Public Transportation".

Germany weighs third relief package as fuel costs and Hormuz crisis bite

Facing persistently high oil and fuel prices, the CDU/CSU parliamentary group in the Bundestag has signaled plans for a third so-called "relief package" for motorists.

In an interview with Bild for its Tuesday edition, deputy faction leader Sepp Müller (CDU) stated: "If the blockade of the Strait of Hormuz continues, we should introduce a third relief package. The focus would then be on more targeted support for small and medium-sized businesses, logistics firms, and commuters. As a task force, we aim to present concrete measures."

Citing "coalition sources," the newspaper reports that discussions are currently underway on targeted aid for low- and middle-income earners, as well as an increased commuter allowance starting in July. However, Müller cautioned against excessive expectations. "We must also be honest: Price normalization will take months. Permanent subsidies funded by taxpayers are difficult to sustain."

The federal government and Bundestag had already approved a first relief package for motorists on April 1 and a second on May 1.

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