As of: 09/04/2022 3:23 p.m
There is praise for the federal government’s planned relief package, but there is also criticism. Many measures are too vague for industry and social associations. The opposition criticized the plans as “disappointing”.
The government’s announced third relief package has met with mixed reactions. There was praise from business and social associations. However, many resolutions have also been criticized for being insufficiently targeted. The opposition described the package as “disappointing”.
Union faction leader Jens Spahn told the news portal t-online: “This is more of a work program for the government than an immediate relief package for the citizens.” For many important points, there is nothing concrete apart from headings.
Left: package “disappointing in many ways”
Dietmar Bartsch, leader of the Left Party parliamentary group, described the package as “disappointing in many ways”. Germany is not well prepared for the winter, Bartsch told t-online. “The plans will not prevent the impoverishment avalanche that could roll over Germany in winter.”
AfD party leader Tino Chrupalla criticized the planned measures as “expensive symptom control”. All relief measures are only short-term solutions as long as the causes of the price explosion are not addressed. “Instead of state redistribution and planned economic interventions, what is needed is targeted relief from consumption taxes on food and energy and the abolition of the CO2 tax,” says Chrupalla.
Economics Grimm praises measures
On the other hand, there was praise from the economist Veronika Grimm. With the measures, the government is taking into account the fact that the burdens caused by the current crisis will be immense, in particular due to the high energy costs. “Thats alright.”
Subsidies would now “essentially be given to people who are particularly less able to cushion the hardship themselves,” said Grimm. According to the economist, who is a member of the Advisory Council for the Assessment of Overall Economic Development, the measures on the electricity market and to cushion the special burdens on gas customers remain “still unspecified”.
Ifo boss Fuest criticizes the “watering can” principle
Ifo President Clemens Fuest told the “Bild” newspaper that the package had light and shadow. The government is clearly trying to make prices and thus incentives to save energy work. However, according to the economist, the support is not targeted enough. “Here you are partly on the road with the watering can.” The relief in electricity prices also benefits households with higher incomes, which can bear the electricity prices themselves.
He described a tax and duty exemption for additional payments to employees as “not sensible”. The state should leave wage setting to the collective bargaining partners.
Christian Feld, ARD Berlin, with information on the third relief package
tagesschau24 1:00 p.m., 4.9.2022
DIW: “Catastrophic signal” for climate protection
The head of the German Institute for Economic Research, Marcel Fratzscher, also criticized a “watering can principle”. The promised 65 billion euros in relief is a good amount, but higher earners would receive the largest part. Alone 70 percent of the ten billion euros in relief from the so-called cold tax progression benefit the top 30 percent. “There are too many forgotten groups in the relief package,” criticized Fratscher.
In addition, Fratzscher criticized the suspension of the adjustment of the CO2 price as a “catastrophic signal for climate protection”. With a relief package, the federal government must “think about the long-term transformation”. This is “completely missing in the relief package”. Environmental organizations such as the WWF made similar statements.
Employer president calls for greater electricity supply
Employer President Rainer Dulge described the overall results as disappointing. It is right that the federal government absorbs social hardship. However, one of the main causes of inflation – energy policy – is not being tackled consistently. “This traffic light government obviously doesn’t have the courage for a new energy policy,” said Dulge.
“The expansion of the welfare state cannot be an answer to rising energy prices on the world market.” It is necessary to broaden the supply of electricity as comprehensively as possible, which also includes an honest discussion about extending the life of nuclear power plants. “A policy that has the courage to turn off pool heaters but ditch thousands of gigawatts of nuclear power is unconvincing,” Dulger said.
Caritas: Social consequences are noticeably cushioned
The German Caritas Association praised the agreement reached by the traffic light coalition: “The social consequences of the politically caused gas shortage are noticeably cushioned,” the association said in Berlin. Solidarity is the order of the day.
However, Caritas will take a close look at the electricity price brake, which the coalition has announced for basic needs. “How this is supposed to succeed has not yet been shown convincingly,” said Caritas President Eva Maria Welskop-Deffaa.
Nevertheless, more targeted measures are needed: “We cannot wait until January 1 for the first relief for people on basic social security benefits. It must be clear: no one’s lights should go out or the heating turned off,” says Diakonie President Ulrich Lilie.
Diakonie: Relief package sets the right course
The Diakonie called for a quick implementation. The government is setting “the right and important course,” said Diakonie President Ulrich Lilie in Berlin. The paper is an important building block for social peace. People expected the resolutions to be implemented quickly.
The Diakonie President particularly welcomed the fact that after the agreement between the SPD, the Greens and the FDP, this time pensioners and students will also receive one-off payments and that the citizen’s allowance will be higher than the current Hartz IV.
Parity welfare association calls for improvements
The Paritätischer Wohlfahrtsverband complained about a persistent social imbalance. “Errors are corrected in this relief package, in which pensioners and students are now also taken into account,” said general manager Ulrich Schneider of the editorial network Germany. The planned housing benefit reform for January 1st is an “overdue step”.
However, Schneider criticized the fact that the Hartz IV standard rate is only to be raised to an expected €500 at the beginning of the year. In addition, the increase is “not even a compensation for inflation and therefore not at all acceptable”. “We will have to request improvements there.”
The president of the social association VdK, Verena Bentele, called the result “impressive”. The measures will prevent an explosion in electricity prices. However, a gas price cap is missing.
Mixed reactions from unions
Yasmin Fahimi, Chair of the DGB, also gave praise: “All in all, the catalog of measures is suitable for actually noticeably reducing the burden on people and companies”. Verdi boss Frank Werneke, on the other hand, described the relief package as “only half a step”. In particular, an effective price brake for electricity and gas is necessary. His union will measure the coalition against that,” explained Werneke. There were also no further direct payments for people with middle and rather low incomes.