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Coalition continues to negotiate: No breakthrough yet with the third relief package

Coalition continues negotiations
No breakthrough yet with the third relief package

Finance Minister Lindner has promised a “massive package for relief”. However, no information about its content has yet leaked out from the Chancellery to the public. What is wrong with the negotiations is not known. There are a number of proposals on the table.

The heads of the traffic light coalition are still struggling for a third relief package to cushion rising prices for the citizens. The coalition committee with representatives of the SPD, Greens and FDP was still meeting late Saturday evening in the Berlin Chancellery. According to information from negotiating circles, the talks in a large group began shortly after noon. It remains to be seen whether an agreement will be reached on Saturday.

It was agreed not to disclose the status of the negotiations led by Chancellor Olaf Scholz. The results of the deliberations are to be presented to the media by the coalition leaders after the conclusion of the talks. A whole bundle of measures is expected with which the coalition wants to react to the sharp rise in energy and living costs. Direct payments for people with low incomes and especially for pensioners and students, tax relief and the successor to the nine-euro ticket in local transport are under discussion.

It would be the third relief package this year. The two previous relief packages included the tank discount that expired at the end of August, the nine-euro ticket and a flat-rate energy price. They had a total volume of a good 30 billion euros.

Federal Minister of Finance Christian Lindner had announced a “massive package for relief” on Wednesday after a two-day cabinet meeting of the federal government. He saw scope for a single-digit billion amount for this year and for a double-digit billion amount for the coming year. The SPD and the Greens are also calling for a so-called excess profit tax, which could be used to skim off profits from the crisis, for example because of the high gas prices at energy companies. It could also be used to fund further relief. Lindner and the FDP are skeptical about the excess profit tax.

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