Germany Agrees on €1.6 Billion Fuel-Cost Relief Package

Chancellor Friedrich Merz’s coalition agreed on €1.6 billion ($1.9 billion) in fuel-price relief to ease the impact of surging costs for German consumers as part of a broader effort aimed at resetting Europe’s largest economy.

The centerpiece of the package is the reduction of a gasoline tax by 17 cents per liter over a period of two months, the German leader said Monday after party officials met over the weekend to reach an agreement. Other measures include a tax-free employer bonus of €1,000, to be introduced for this year.