Reactions to the relief package
The traffic light delivers – but at the expense of climate protection
O-Ton Olaf Scholz (SPD), Federal Chancellor: “As far as the supply situation is concerned, according to everything we can judge today, we’re getting through the winter. And that’s a big step forward. If we were in a situation like the one we’re facing today year, nobody in Germany could have said this sentence. That is the big difference after a year of effort. We also experience that there is speculation. And that is particularly the case when we think of the electricity market. There are chance profits , Excess profits that are made by producers who can simply take advantage of the situation where the very expensive price for gas determines the price of electricity and who therefore earn a great deal of money. We have therefore made it our goal to change the market organization in such a way that that these random prizes will no longer occur or that they will be skimmed off.” O-Ton Christian Lindner (FDP), Federal Minister of Finance: “This is a real relief in a double-digit billion euro amount that we are talking about here. So within the electricity market a double-digit billion euro amount that we redistribute. I could now give a number. I’m not doing that because it contains a bit of speculation, because we don’t know exactly how the electricity price will develop in the next few months.” Omid Nouripour (Greens), party leader: “The package we are launching, this package is substantial and well-rounded, has two messages. First, we will not allow ourselves to be divided in this country, not by the Russian aggression in Ukraine and not of the Russian way and of the aggressive way in which Russia is trying to cut down on energy in this country and thus also driving up prices. Second: The traffic light delivers. We stand by the people with their needs and fears.”
The traffic light coalition’s 65 billion relief package is earning respect. Nevertheless, there is also criticism. Economists sometimes complain about a “watering can principle”. Climate protectors rate the package as a step backwards.
“The traffic light delivers.” This is a much-used sentence in response to the 65 billion euro relief package presented by Chancellor Olaf Scholz (SPD) and the leaders of the three coalition parties on Sunday morning in Berlin. The energy price brakes and grants, the one-off payments to pensioners and students that have been missed so far, the adjustment of the cold progression in tax law and the nationwide successor to the 9-euro Ticket.
Nevertheless, there is also criticism. This comes mainly from climate protectors – although Greens co-boss Omnid Nouripour saw during the press conference that the measures against the climate crisis that had already been launched were not affected. “That relief package takes fossil steps backwards and does not give sufficiently fair answers”, tweeted Fridays for Future Germany. The climate activists also criticize the increase in the price of the 9-euro ticket as “unambitious”.
The deputy head of the Expert Council for Climate Issues, Brigitte Knopf, also sees “bad signs for climate protection” in addition to positive resolutions. Above all, the fact that the increase in the CO2 price will be postponed by a year undermines the credibility of the traffic light in climate protection. The reduction in VAT on gas and the increase in the long-distance commuter allowance also counteract climate protection measures.
Habeck: “The package is on target”
Economics and Climate Minister Robert Habeck (Green) said in a statement circulated by his ministry nothing on the impact of the package on climate protection. He emphasized social aspects. The relief package follows a “crucial principle”: “Those who earn less will be relieved absolutely more. This means that the package is on target.” By skimming off random profits, “we can then introduce an electricity price brake for households”. In the report, Habeck also counts the producers of renewable energy among the beneficiaries of the current situation.
The Minister of Economics and FDP– Boss Christian Lindner. “We empower the people who need our solidarity. And we don’t forget those on whose shoulders this country stands – namely the hard working middle of society,” posted on Twitter.
Bartsch: “Will not prevent impoverishment avalanche in winter”
The opposition is much more critical of the 65 billion package. “This is more of a work program for the government than an immediate relief package for the citizens,” said Jens Spahn, Vice President of the Union faction (CDU) the news portal T-Online. For many important points, there is nothing concrete apart from headings – and according to Spahn, the biggest problem, the gas price, there is a gap, says Spahn. “Here, people are put off with a commission.”
leftGroup leader Amira Mohammed Ali criticized: “300 euros for pensioners and 200 euros for students are a joke.” First these groups got nothing, now they should be satisfied with “crumbs”, she tweeted. Her party colleague Bernd Riexinger described the package as a “disappointment”. Left co-group leader Dietmar Bartsch added to the news portal T-Online: “The plans will not prevent the impoverishment avalanche that could roll over Germany in winter.”
AfDAccording to a statement, 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.” Together with his co-chairman Weidel, Chrupalla demands: “We must end the unspeakable economic war with Russia, put Nord Stream 2 into operation, finally ensure the continued operation of the nuclear power plants and force the European Central Bank to end its irresponsible monetary policy.”
Economy Grimm: Skimming off random profits inhibits investments
In addition to praise, economists also criticize individual decisions in the package. In the “Frankfurter Allgemeine Zeitung” the economist Veronika Grimm from the German government’s council of experts emphasized the targeted support of particularly burdened groups such as pensioners and students. Above all, people who cannot cushion hardship themselves would receive grants.
According to Grimm, the planned measures on the electricity market and to protect particularly burdened gas customers are not yet specific enough. When siphoning off “accidental profits” one should not overshoot the target in order not to make investments unattractive. “We urgently need these investments in order to overcome the energy crisis in the medium term.”
Ifo boss Fuest: “Sometimes with the watering can on the way”
Ifo President Clemens Fuest told the “Bild” newspaper that the package had light and shadow. The government is clearly trying to let prices and thus incentives to save energy work. However, the support is not targeted enough. “Here you are partly on the road with the watering can.” The relief in electricity prices would also benefit households with higher incomes. 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.”
The scientific director of the Institute for Macroeconomics and Business Cycle Research (IMK) of the union-affiliated Hans Böckler Foundation, Sebastian Dullien, praised many “important and sensible” individual measures in the package – such as targeted support for pensioners and students, increasing child and the adjustment of the citizen benefit. This would close some gaps in justice.
Star pianist Igor Levit summed it up very briefly: “You did well”.
Note: This article has been updated several times.