Greens are against it too
Scholz’ plan for a one-off payment is met with rejection
06/28/2022, 05:18 am
Olaf Scholz wants to reduce the burden of inflation with a tax-free one-off payment for employees. But criticism of the plan is not only coming from the opposition – along with some trade unions, the Greens parliamentary group also thinks little of the Chancellor’s idea.
Chancellor Olaf Scholz’s plan for a tax-free one-off payment to employees in the fight against inflation is met with widespread rejection, including by the Green coalition partner. “It has to be answered why people with very high incomes should receive state support in companies that make good profits,” said the Greens parliamentary group Vice-President Andreas Audretsch the Ippen-Media network. It also remains open how the self-employed or employees in non-tariff companies should be helped.
Scholz proposes a tax-free one-off payment by employers. In return, the unions should accept lower wage increases in collective bargaining rounds. The state and the social partners would pull together.
The idea behind this is to prevent so-called second-round effects, which could lead to a wage-price spiral and thereby further fuel high inflation. On July 4th, Scholz wants to start a dialogue with employers and unions, the so-called concerted action.
“One-time help will only help in the short term”
Several unions had already rejected the proposal. The President of the German Institute for Economic Research (DIW Berlin), Marcel Fratzscher, now criticized in the “Augsburger Allgemeine”: “One-time aid will only help in the short term, but will not be able to relieve people with low incomes in the long term.” Higher wages and social benefits are therefore the only sustainable way.
Other negative voices also came from the opposition. CSU financial politician Sebastian Brehm told the editorial network Germany (RND): “Scholz is trying to cover up the fact that his coalition is going into the summer break completely haphazardly when it comes to further relief.” Pensioners and students also received nothing from the Chancellor’s plan.
The new co-chairman of the Left Party, Martin Schirdewan, said on ntv: “The unions must go into the forthcoming collective bargaining with high demands so that inflation and the development of purchasing power for employees are cushioned.”