relief package
Call for more comprehensive relief in the crisis
Energy costs in Germany continue to rise – a relief package is intended to remedy the situation. photo
© Marijan Murat/dpa
Who is going to pay for that? Rising prices and impending bottlenecks in the energy supply are causing many people to be worried or annoyed. Associations write a fire letter to the Federal Minister of Economics.
The federal government is under increasing pressure: Business and consumer protection associations, trade unions and the opposition want comprehensive further relief for citizens. The sharp rise in energy prices would “massively overwhelm” the less wealthy sections of the population, according to a joint letter from several organizations to Federal Minister of Economics Robert Habeck (Greens). The letter available to the German Press Agency comes from the GdW Federal Association of German housing and real estate companies, the Federal Association of Consumer Centers vzbv and the VKU Association of Public Utilities.
The government has in principle promised further relief, but specific recipient groups, structure and financing are unclear.
The union IG Metall called for a price cap for gas and electricity. The first chairman Jörg Hofmann also spoke out in favor of a second energy price flat rate, which, in addition to employees, must also help pensioners and students, as he told the German Press Agency. His Verdi chairman Frank Werneke sees it the same way: In the “Rheinische Post” he spoke of 500 euros. Hofmann said: “Without affordable energy costs, there is a risk that social cohesion will break.” Unlike many companies, people could not pass on the massive price increases, said Hofmann. “At the same time, they have to experience how billions in taxes are supposed to subsidize energy companies, for example.”
Relief through price caps
In their letter, the associations propose “very short-term” relief to limit ancillary (rental) costs and a flat-rate and socially graded energy aid for low-income households, regardless of their type of housing. There must be additional liquidity support and insolvency protection for affected companies.
From October, gas customers will have to pay a state levy to prevent the collapse of large gas importers. The surcharge is added to the already sharply rising prices. The federal government has announced that it will reduce VAT on gas.
Because of the energy crisis, Chancellor Olaf Scholz (SPD) announced that he would expand the group of housing benefit recipients in the new year. “We think a lot more people have to get that, and there has to be a heating cost component,” he said at the start of his party’s election campaign in Cuxhaven. There in Lower Saxony, the state parliament will be re-elected on October 9th. Scholz also announced tax relief. This time, pensioners and students should also benefit from the relief.
Green Party leader Ricarda Lang told the Funke newspapers that the relief package should be available “soon”. SPD General Secretary Kevin Kühnert had made a similar statement (“in a few days”). FDP parliamentary group leader Christian Dürr was skeptical about possible one-off payments in the Funke newspapers.
Corporations should get involved
In terms of financing, SPD leader Lars Klingbeil spoke out in favor of passing on crisis profits from corporations to people on low incomes. “We can redistribute random profits from large companies to people with an income of 1,500, 2,000 or 3,000 euros,” said Klingbeil of the Funke media group (Saturday). “It’s also a question of social cohesion in our society. Everyone has to do their part so that we can get through this challenging time well.”
The CDU chairman Friedrich Merz called for a clearer focus on low earners – and less help for households with medium or high incomes. “1,000 euros in energy money for the incomes in the lower third would make more sense than 300 euros for everyone,” he told “Focus” and “Focus Online”. “I also don’t understand why large companies get financial support per se, but small ones don’t. There must be clear criteria here as to who has what entitlement.” Merz, who also heads the parliamentary group, added: “But the fact is that the state cannot help everyone.” And: “In this crisis we will see companies that don’t make it. And we cannot promise to balance everything out of the federal budget.”