Six months ago, many economists still thought that the price increases that were beginning would only last for a short time. You were wrong. On Thursday evening, talk show host Maybrit Illner will talk to her guests on ZDF about possible relief for people in Germany.
For many people, every week’s shopping these days is becoming an experience, but a negative one. Families in particular notice in their wallets: It’s inflation. The expenses for a weekly shop can easily increase by a third. In the last few days, milk and butter in particular have become significantly more expensive. There are many reasons for this. But there are also many simplifications conceivable, especially with regard to energy costs. On Thursday evening, Maybrit Illner spoke to her guests on her talk show on ZDF about what the federal government can do to help people in this area in particular.
Annabel Oelmann from the Bremen consumer center sees the problem not only in the increased prices, but also in the corona pandemic. As a result, many people have less money in their pockets. There are many reasons for this: job losses or short-time work on the one hand, home office and home schooling on the other. “We’re more at home,” says Oelmann quite rightly. As a result, the energy consumption increases automatically, and now the increased energy costs are added to this. Oelmann acknowledges that the federal government will help people who receive government benefits such as housing benefits. They should get a subsidy for the heating costs. But that’s not enough, she complains.
Finance Minister Christian Lindner agrees. “We have to take care of the broad middle of our country, of the people who may work a lot and have to commute to their businesses and who are particularly burdened by the rising prices.” Lindner is particularly concerned with the people who are above the entitlement to social benefits, and that is the broad masses. And he explains how the federal government wants to support them. As of July 1, the EEG surcharge for renewable energies, which is added to the electricity price, should be completely eliminated. It must be clearly regulated that the electricity companies give the money back to the citizens. According to Lindner, this would free up a total of 6.6 billion euros. But that is not enough for the minister, further measures would have to be taken. Lindner promises: “I would be willing to talk about taking further measures.”
“It’s also about geopolitics”
Bundestag Vice President Katrin Göring-Eckardt from the Greens gives another reason for the current price increases. Prosperity is at risk if fossil fuel inflation continues, she says. This is also why the Greens want the energy transition: gas and coal are expensive, renewable energies would become cheaper. The rise in gas prices is a geopolitical problem for which Russian President Vladimir Putin is partly to blame. He’s running out of gas, which we still need at the moment. Göring-Eckardt has two demands: a heating subsidy for people “who live in the lower range” and special support for children from low-income families.
CDU leader Friedrich Merz points out that the high energy costs are not the only problem, but also the global shortage of raw materials. In addition, in his opinion, there are high costs in the labor market. He says: “We have a price-wage spiral without the participation of the contracting parties.” As a result of digitization, we would have changes in our working world that we would not really see until the middle of the year. Merz fears that families will have to pay up to 2,000 euros more than planned for their next utility bill.
Lindner against VAT reduction
Merz therefore calls for a “mixture of several elements in order to achieve price containment.” His demands: reduce energy costs and VAT, increase commuter allowances, and change something about cold progression.
Cold progression means: An employee gets a salary increase, but can then afford less than before. This may be because he has to pay a higher tax rate. However, due to the current inflation, food is also becoming more expensive. The inflation rate is currently around five percent. Because of the higher tax burden, a salary increase would have to be significantly higher if it is to have a positive effect.
Lindner points out that the federal government is legally obliged to deal with this topic again this year. On the other hand, he is skeptical about reducing the value-added tax for energy costs to seven percent, as proposed by Annabel Oelmann and as proposed by the Union in the Bundestag. He calculates: The reduction in electricity and value added tax cost 15 billion euros. “The Union has to say where the money should come from.”
Annabel Oelmann has an idea. She knows: “The pressure is really big and we have to take everyone with us.” There are many people who need financial support, she says. “Not everyone can pay the same amount. But we also have people who can – and want to – pay more.”