German leaders agree on plan to subsidize energy

German officials have agreed on the main details of a plan to provide up to $198 billion in subsidies to households and businesses to ease the strain of high gas, electricity and heating prices.

Chancellor Olaf Scholz and the governors of Germany's 16 states agreed Wednesday on a two-stage plan to tackle high gas prices. Scholz's Cabinet agreed that the state will take on the cost of gas customers’ monthly bill in December.

That will be followed by a price subsidy for part of what households use starting in March and throughout April 2024. German officials say the plan, which will limit subsidies to a proportion of pre-crisis use, will still encourage people to save energy.