October 04
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German Chancellor Olaf Scholz has promised citizens a third bailout package to offset rising inflation, while warning that the coming months will not be easy, reports Bloomberg.

He assured that his government is keeping the energy crisis under control and will not leave citizens suffering from rising heating prices. At the same time, he signaled that the coming winter would be tough.

“We are facing serious times, I think everyone in this country knows that,” Scholz, who took questions on a broad range of issues for more than 100 minutes, told reporters. “We will do everything we can to ensure that citizens get safely through this period,” he said, reiterating his mantra: “You will never walk alone.”

The country could face gas rationing if it fails to secure sufficient reserves. The government aims to fill storage at 95% by November, up from 73.7% as of Tuesday.

Scholz is under pressure to avert an energy shortage that would be unprecedented in a developed country.

The Scholz government also faced a growing threat to Germany's supply chains from the rapidly draining Rhine River, a key transportation link.

Scholz said his government's current borrowing plans are sufficient to pay for a new aid package under discussion. He also backed a plan unveiled this week by Finance Minister Christian Lindner that aims to adjust tax brackets to reflect higher inflation. Scholz explained that he made several similar changes during his tenure as finance minister and that it makes sense to reduce the burden on taxpayers as they struggle with higher spending.

Scholz also said that Germany would continue to supply weapons to Ukraine. He added that progress had been made in negotiations with the G7 countries to cap the price of Russian oil exports, saying: “We are working very hard to implement this plan.”

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