Heating, electricity and refueling will be more expensive than expected due to the traffic light’s budget decisions for 2024. Economic experts and associations criticize this and demand compensation – such as the promised climate money.
After reaching an agreement in the weeks-long budget dispute, the leaders of the traffic light coalition are emphasizing the social acceptability of their compromise. However, there is criticism from economic experts and associations.
The economist Veronika Grimm appeals to the traffic light to introduce the payment of climate money to citizens as already agreed in the coalition agreement. “That would be a very important measure to create acceptance for climate protection,” said the member of the expert council for assessing overall economic development on the television station “Welt”.
Low-income earners particularly affected
For people with low incomes, the price increases resulting from the increase in the cost of carbon dioxide emissions are particularly difficult to absorb. But they in particular would benefit particularly from the climate money already agreed in the coalition agreement. Because they generally have a very small CO2 footprint, but would get back as much per capita as everyone else, explained Grimm. “Climate money must definitely become the focus of the discussion again with a view to the future.”
“Climate money has to come”
The Vice President of the Leibniz Institute for Economic Research Halle (IWH), Oliver Holtemöller, sees it similarly. “Raising the CO2 price is something that economists have recommended for a long time in order to efficiently achieve climate protection goals,” he told the MDR. The fact that social compensation is missing is “a deficiency”.
The social association VdK is also calling for this to change. “An increase in the CO2 price is anti-social,” said VdK boss Verena Bentele to the Germany editorial network. “That’s why climate money has to come so that people with small pockets aren’t put under an excessive burden.”
Ver.di boss Frank Werneke warned of significant additional burdens for employees. “The solution planned by the traffic light coalition has a severe social imbalance,” Werneke told the “Augsburger Allgemeine”. With the significant increase in the CO2 price by ten to 45 euros per ton next year, commuters in particular would be burdened one-sidedly when it comes to fuel prices. “The actually promised climate money for social compensation is not in sight,” criticized the trade unionist. “The increase in the CO2 price affects all citizens – especially those with lower incomes.”
Ampel defends the decisions
Economics Minister Robert Habeck defended the traffic light decisions on the 2024 budget. “It’s right: not all of the costs that the crisis triggered can no longer be covered,” said the Green politician on ZDF about the consequences of the Federal Constitutional Court’s ruling on budget management.
If one is no longer allowed to take on debt and there is a political agreement not to increase taxes, then the state can either provide fewer services or increase revenue. He pointed out that the state continues to charge electricity customers the costs of the levy to promote green electricity (EEG levy).
Scholz raised in the ARD highlighted that the agreed wage and income tax relief amounting to 15 billion euros remained in place. “It stays with them. And that affects small and medium incomes,” he said on the show on Wednesday evening “Show your colors”.
Lindner: Relief from January
Federal Finance Minister Christian Lindner also emphasized daily topics-Interview: “We can say with certainty that there will be clearly noticeable relief for the broad middle, the working population in Germany, from January 1st next year.”
15 billion euros in wage and income tax relief are planned, for example the tax-free subsistence minimum should be increased. “This benefits small and medium incomes, as well as skilled workers and pensioners, provided they pay taxes.”
When settling their weeks-long budget dispute, the coalition leaders agreed that the CO2 price should rise more sharply on January 1st than previously planned: namely from 30 euros per ton of carbon dioxide emissions to 45 euros instead of just 40. This makes energy production more expensive , but also the production of many goods.
Hans-Joachim Vieweger, ARD Berlin, tagesschau, December 14, 2023 8:17 a.m