Olaf Scholz fears “social explosives”

In the “summer interview” on ARD, Scholz was primarily confronted with social issues – and the desire for a state that takes care of everything. The chancellor is optimistic, but the federal president prepares the Germans for difficult times.

Chancellor Olaf Scholz at the G-7 meeting at Schloss Elmau. After the press conference that followed, numerous journalists criticized his behavior towards a colleague.

Leonhard Foeger / Reuters

German Chancellor Olaf Scholz has had no luck with his press appointments in the past few days. During a television interview after the G-7 summit, a persistent mosquito bothered him. At a press conference on the same day, he scolded a journalist, whereupon many colleagues expressed solidarity with her and attested to Scholz’s arrogance.

The accusation also came up during the traditional “summer interview” with the chancellor, which ran on Sunday evening on German television. Scholz quickly steered the conversation back to social issues that dominated the interview.

ARD journalist Tina Hassel asked Scholz several times whether the German government was doing enough to cushion inflation and high energy prices. Clips from particularly affected citizens suggested that this was not the case. Scholz countered the allegations with lists of everything his government had done to relieve the burden on citizens. In the case of lower and middle incomes, about 90 percent of the price increases could be compensated for, he said.

Gasoline costs an average of 1.89 euros per liter

Average daily price in Germany for 1 liter of Super E5 in 2022, in euros

Highest/lowest price¹

1

Russian invasion of Ukraine at the end of February.

2

Tank discount (35 cents) comes into effect on June 1st.

With a view to possible further relief packages, Hassel wanted to know from Scholz: “When will something new come out?” You can’t already put together the next package, said Scholz. The current aid package is worth around 30 billion euros. The mileage allowance for commuters has been increased, the compulsory financing of renewable energies via the electricity bill (EEG surcharge) has been cut and a flat-rate heating cost allowance for housing benefit recipients has been introduced. “Right now all of these measures are being rolled out,” said Scholz.

Crisis meeting in the chancellery

“As far as poor people are concerned,” his government “did a lot,” said the Chancellor – and cited a one-time payment of 200 euros to recipients of social assistance or the 9-euro ticket, which Germans currently use nationwide for 9 euros a month, as evidence use almost all public transport. That helps “very, very many, especially,” said Scholz and of course did not mention the chaos caused by the rush to local trains over Pentecost.

An exchange is to take place in the Chancellery on Monday, to which Scholz has invited employers and employee representatives. The aim of the meeting is to curb the effects of inflation. The Bundesbank and scientists are also to take part. He is very concerned about rising energy prices, said Scholz. “Citizens have to get by with their lives, and if the heating bill suddenly increases by a few hundred euros, then that’s a sum that many can’t really cope with.” That was “social explosives”.

Regarding the cap on energy prices demanded by the German trade union federation, Scholz said that no measures would be decided on Monday. They want to initiate a process, and in the end “everyone will join hands again”: employers, employees and the state. The belief in the state as a helping hand, which is widespread in Germany, fits the agenda of the chancellor, who won the federal election last year primarily with social issues.

Steinmeier believes that “several hard years” are possible

Scholz will also know for sure that the state cannot compensate for inflation and high energy prices in the long term. It would have been courageous to give the citizens a clean slate here, but that would have been a tarnished image and that bad poll numbers his Social Democrats severely limit Scholz’s scope.

Significantly less gas from Russia

Daily gas flows from Russia to and through Germany, in million m³

1

Russian invasion of Ukraine at the end of February.

2

Suppliers report less gas due to unusually high temperatures in mid-March.

3

Russia stops supplying Gazprom Germania.

4

Russia stops gas exports to the Netherlands.

5

Gazprom cuts gas supplies through Nord Stream 1.

Federal President Frank-Walter Steinmeier, who also gave a “summer interview” on ZDF on Sunday, made a different statement. Regarding the Russian attack on Ukraine, he said: “This is now a break with normality. It may also be that we have several tough years ahead of us.” Steinmeier called for greater relief for low earners and criticized that the measures taken so far had not reached all citizens.

With its dependence on Russian oil and gas, Germany has maneuvered itself into an awkward position, and Steinmeier was instrumental in this as a former foreign minister. Russia has severely curtailed its supplies via the Nord Stream 1 pipeline, apparently in retaliation for German support for Ukraine.

Due to maintenance work, the supply is to be completely interrupted for about ten days from July 11th. Economics Minister Robert Habeck admitted on Saturday whether Russia would turn on the gas tap again afterwards. The Federal Network Agency fears a complete cessation of Russian gas supplies and warned on Saturday that gas prices for end customers could triple.

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