Before coalition committee
Unions demand a surcharge on Hartz IV
Yasmin Fahimi is Chairwoman of the German Trade Union Confederation. Photo: Fabian Sommer/dpa
© dpa-infocom GmbH
Rising prices make life difficult for people. The Finance Minister warns that there could be “a very worrying situation” in just a few weeks. Is the governing coalition putting together another relief package?
Before a top meeting of the government coalition on the increased prices for energy and food, the German trade union federation demands a monthly surcharge for all Hartz IV recipients.
This is urgently required from a socio-political point of view so that poverty is not exacerbated, said DGB chairwoman Yasmin Fahimi of the Funke media group. In addition, the union leader called for a price cap for “basic needs” for electricity and gas. This would quickly relieve all private households and at the same time stimulate energy saving. “Because if you consume more than this basic requirement, you pay all the more.” In view of rising prices and the throttled gas supply from Russia, another relief package for the citizens is “absolutely” needed, said Fahimi.
The coalition committee of SPD, Greens and FDP meets this Wednesday. Possible measures to combat price increases will be discussed in the coming weeks. A press briefing afterwards was initially not planned.
Federal Social Minister Hubertus Heil (SPD) warned in advance that the state could not compensate for everything for everyone. He told the “Stern”: “Basically, I don’t see any scope to relieve people who have a very high income.” However, he is open to talking about targeted relief for lower and normal incomes. “We have to cushion the consequences of the price development specifically for the people for whom it really is an existential threat.”
Lindner warns of economic crisis
Finance Minister Christian Lindner (FDP) swore that citizens would face a long phase of deprivation in view of rising prices as a result of the Ukraine war. “My concern is that we could have a very worrying situation in a few weeks and months,” said Lindner on Tuesday evening on ZDF’s “heute journal”. It’s about three to four, maybe five years of scarcity. “There is a risk of a very serious economic crisis due to the sharp rise in energy prices, due to supply chain problems, due to inflation.” The primary goal must now be to stop inflation. “Not only because of the economy, but because many people also worry about whether they can pay for life.”
The DGB called for the basic income tax allowance to be increased immediately to at least 12,800 euros. “In such a time of crisis, wage policy alone cannot be burdened with preventing losses in purchasing power and cushioning social hardship,” said Fahimi.
The coalition committee is also to prepare the “concerted action” announced by Chancellor Olaf Scholz (SPD) on June 1st. On July 4th, top representatives of employees and employers will discuss how to get the price development under control.
Russia has been pumping significantly less gas to Germany for a few days – according to the Federal Network Agency, the supply situation is therefore tense and prices are high. Food has also become significantly more expensive in the almost four months since the start of the Russian attack on Ukraine.
There are a number of suggestions
The deputy federal chairman of the CDU, Andreas Jung, proposed a joint “exercise” by the federal, state and local governments. Public buildings must be a role model, there must be strict savings in cooling, heating and lighting – “from the Chancellery in Berlin to the town hall around the corner,” he told the “Neue Osnabrücker Zeitung”. That’s where “something really comes together”.
The deputy leader of the Union, Jens Spahn, told the Funke newspapers: “Sustainable and targeted relief is needed where the prices are highest.” Among other things, he suggested energy vouchers that “combine saving energy and money”. In addition, Spahn advocated a reduction in the electricity tax.
The co-head of the SPD-Left, Sebastian Roloff, told the “Handelsblatt” before the coalition committee: “I could imagine a continuation of the 9-euro ticket or similar models, such as the 365-euro annual ticket.” He also advocated “fuel vouchers for commuters”, which were even more targeted than the fuel discount.
The taxpayers’ association and the federal association of medium-sized businesses (BVMW) warned the coalition against suspending the debt brake again in the coming year. It is not just any political symbol, but an expression of fair coexistence between the generations and a sustainable budgetary policy, said Reiner Holznagel, President of the Taxpayers’ Association, of the Funke media group. He demanded that the traffic light coalition now, as agreed, have to reduce superfluous, ineffective and climate-damaging subsidies and expenditure.