energy
DGB boss: Relief must be felt across the board
Yasmin Fahimi is Chairwoman of the German Trade Union Confederation. photo
© Kay Nietfeld/dpa
The Chancellor has announced further relief because of the high energy prices – but who exactly should be relieved and how? The chairwoman of the German trade union federation has a clear demand.
DGB boss Yasmin Fahimi has called on the federal government to provide noticeable relief, not only for the socially needy. “Relief measures must also be felt across the board,” said the chairwoman of the German Trade Union Confederation of the German Press Agency in Berlin.
“Sure, the federal government can’t put a big cheese cover over us,” said Fahimi. There is also a great willingness to show solidarity. “But there is growing irritation that in a crisis, giving up is always the most demanded of those who have the least,” Fahimi said. “Therefore, the government must offer a clever overall solution.”
Pressure remains high despite relief
Fahimi described the gas levy as correct in the matter. However, it burdens an average household four times more than the EEG surcharge last did. “It is therefore right to reduce VAT on gas at the same time,” said Fahimi. This was announced by Chancellor Olaf Scholz (SPD). Fahimi said: “But why isn’t the electricity tax finally reduced to the minimum permissible in Europe?”
Overall, the pressure to reduce energy costs remains high. “And not just for a few need groups, but also across the board,” said Fahimi. “A more detailed debate” is therefore necessary about who will be relieved and to what extent.
“Those who cannot pay their bills, i.e. in particular transfer recipients, must be given full relief.” The situation is also difficult for people with low annual incomes or small pensions. “They don’t have any reserves either, and it’s not just about saving on one or the other vacation,” said the DGB boss. “Even if we can’t absorb every burden 100 percent, we have to give these people a signal that we are absorbing them and that they can plan again.”
Long-term planning required
It’s not just about the electricity and gas bill for this year. Germany’s top trade unionist said: “But what about the perspective of 2023, 2024? Can I plan anything at all, such as vacation or any purchases? Or do I have to hold it all back?”
Fahimi said: “Of course we are committed to ensuring that the federal government takes further measures this year.” This could be a further energy price flat rate, which should then also apply to pensioners and students. However, such a lump sum cannot be a permanent solution. “That’s why our call for an energy price cap is more relevant than ever,” said Fahimi. The DGB boss had already proposed such a cap before the start of the concerted action to which Scholz had invited the heads of employers and employees to the Chancellery because of the high inflation.
Now Fahimi underpinned her advance. “It can’t be implemented in a month or two, but that makes it all the more urgent for us to tackle the topic conceptually this year,” she demanded. “We need more than just a tax policy redistribution.”
set savings incentives
Central to the model is the guaranteed price for a defined basic requirement. “There is a higher market price for the additional consumption,” Fahimi continues. That creates savings incentives. “Because then you might think: Is the normal freezer compartment in my station wagon enough for me or do I really need the chest freezer in the basement? Can I switch off the light more consistently and only turn on the heating when I’m really at home?”
Fahimi pointed to the medium-term perspective. “Even if we succeed in procuring sufficient gas from countries other than Russia in the next two years, the price level will initially be high.” However, the prospect of a reduction in energy prices is associated with the expansion of renewables. “Then why not just spread the burden? We should spread the cost over a longer period of time.”
Fahimi explained: “Our suggestion is: We now cap the energy price and say that consumers don’t have to pay the fixed level for two years, but for example for four years. But the price shock will not come with a big bang and will kill us all .” From Fahimi’s point of view, this would also be interesting for the industry. “Because the energy prices not only demand our wallets, but also call entire production sectors into question.” Fahimi announced that she would continue to address her suggestions in the concerted action.