As for the economic effects of such 'offsets,' Rabobank notes:

The EU was already looking at spending lots on energy subsidies...  unless the surge in energy prices is short-lived --which hinges on the war and the metacrisis suddenly resolving themselves(!)-- then this is how you return to something like a 70's-style wage-price spiral.

After a meeting late on Wednesday evening, the German government managed to agree on a package of relief measures for households struggling with energy costs, including cut-price transport tickets and a one-off energy allowance.

The new measures, which include a one-off €300 energy allowance for workers, should offer quick and unbureaucratic relief for low- and middle-income earners, the government said on Thursday.

When the allowance comes in, all employed persons liable to income tax will be paid a one-time flat-rate energy allowance of €300 as a supplement to their salary.

In their original proposals, the SPD had envisioned this money being paid out via the 2023 tax return, which would have the disadvantage of not reaching consumers' pockets for another two years.

But the government may be working on a quicker way to release the money to struggling households.