For the time being, Olaf Scholz has achieved everything: people talk. And talks. And talks. After all, the chancellor sees the “concerted action,” which met for the first time on Monday, primarily as a “process.” Processes take time, and it will take time for the government, employers and trade unions to find common answers to the rampant inflation. Scholz will be fine with that. Because the chancellor is playing for time.
There is evidence that this tactic is the right one. On the one hand, because some of the relief is just beginning to take effect. Child bonuses, heating cost subsidies and energy price flat rates are still being paid out, and some tax relief will only be felt in 2023. And, more importantly, because the big burdens are yet to come: the increased gas prices, for example, will only unfold their full force with a delay, possibly not until next year. They will hit the poorest households hardest and can bankrupt ailing companies. So the government would do well not to unpack the whole arsenal of possible relief now – even if the number of corresponding demands is rising at an even faster rate these days than the prices.
In addition to the fact that at first people only talk, the chancellor should also like the circle of those the now talk. Because with his new discussion circle, Scholz draws attention away from the government – and more towards the social partners. When it comes to cushioning the consequences of rising prices for employees in a way that does not plunge companies into the abyss, employers and trade unions are the first address. The federal government, on the other hand, should focus its limited resources on cushioning the worst hardships. Time will show that she will have her hands full with that.