The expectations are high. The grand coalition wants to boost the economy with a package worth billions, while at the same time triggering a boost in climate protection and digital change. So much for the wish list. Union and SPD are facing tough negotiations.
Berlin (dpa) - It's like a bazaar. The Federal Government's stimulus package is not about small sums, but billions - according to "Bild am Sonntag" there is talk of up to 80 billion euros. Because the situation is serious.
As a result of the Corona crisis, Germany threatens to plunge into a severe recession. Unemployment could rise significantly. Consumers are holding back, also because many employees have lost income due to short-time work.
The leaders of the black-red coalition want to make decisions this Tuesday. Finance minister Olaf Scholz (SPD) tried in mid-March, at the beginning of the crisis, to set the course: it was not messed up, but padding. In view of massive restrictions, the government decided to provide aid to companies and workers worth billions. Now it is a matter of boosting the economy again in the course of the gradual easing - but also of fundamental reforms. An overview:
CAR BONUSES AND MOBILITY
The demand for new cars has hit the basement almost unprecedentedly. The German key industry, which is already undergoing a difficult transition to alternative drives, hopes that purchase premiums will get the business going again. Existing premiums for electric cars should be increased, she says. In addition, there should also be incentives to buy modern gasoline and diesel. In view of the climate crisis, this is not only rejected by environmental associations, but is also controversial in the coalition. Rifle aid, however, comes from countries in which the auto industry plays an important role.
But there is also a mobility bonus in the debate - who could also benefit from buying a new bike or a Bahncard. In addition, the federal government has long been planning a reform of the vehicle tax from 2021, which should improve the environment-friendly cars. There are said to be billions in aid for Deutsche Bahn, which has come under financial pressure due to the collapse in passenger numbers.
FAMILY BONUS
A family or children's bonus is under discussion to help families and at the same time to ensure demand in retail. Scholz suggests that parents receive a one-off payment of 300 euros for each child, and SPD Vice Serpil Midyatli also insists. Cost point: between five and six billion euros. This is supposed to relieve families, who have to master the balancing act between childcare and work at home, and strengthen purchasing power. However, there are reservations in the Union. The CSU regional group leader in the Bundestag, Alexander Dobrindt, for example, said that instead, innovations and new technologies had to be promoted.
SOLI
The reduction of the solidarity surcharge could also have an impact on citizens' wallets. The debate is that the soli will cease to exist in July and not at the beginning of 2021 as previously planned. The Arbeitsgemeinschaft Mittelstand, an association, for example, would like to see a complete abolition in the short term. The Union also wants a complete abolition, the SPD rejects that. So far, it is planned that the soli will cease to apply to 90 percent of the payers from January.
HELP FOR COMPANIES
Many industries continue to be heavily burdened because there are still restrictions and it is not so easy to make up for lost sales. This goes to the financial cushions, many companies with tens of thousands of employees fear for their existence - for example in the catering and tourism sectors, but also in the trade fair industry. There are also showmen, solo freelancers or artists. As a result, additional billions in aid could now be issued, for example in the form of grants
The expansion of the loss carry-back is at the top of the wish list for business associations. Companies could then offset losses this year more than before with profits from previous years, which would quickly put money in the till. It is also about easing depreciation and reducing bureaucracy.
ELECTRIC PRICES
In a European comparison, German electricity prices are high, which is why many associations, but also politicians, citizens and companies, are relieving the burden. Against the background of the Corona crisis, the EEG surcharge to promote green electricity that electricity customers pay is threatening to rise significantly. The German government had already promised to gradually reduce the levy from 2021 if CO2 pricing made refueling and heating more expensive - but that was far from enough.
It would be conceivable to reduce the electricity tax to the European minimum rate. A further reduction in the EEG surcharge is also under discussion - for example by using budget funds for financing, i.e. taxpayers' money. Another option would be to reduce network charges, another component of the electricity price.
RELIEF OF THE MUNICIPALITIES
Because tax revenues are breaking down, the corona crisis is tearing a huge hole in the coffers of the municipalities. Scholz wants to compensate for this - and in the same step carry out a haircut for hopelessly over-indebted municipalities. Otherwise there is a risk that any crisis aid will only seep away in the debt hole and municipalities will no longer be able to invest. But that would be a great danger for the construction industry, for example, which is already losing orders. Scholz suggests that the federal and state governments invest a total of 57 billion euros.
Union-led countries like Bavaria in particular are up in arms. The Union in the Bundestag counters with a counter-concept: Vice-Group leader Andreas Jung and the head of the CDU local government association, Christian Haase, suggest that the federal government should instead take on more municipal spending and forego local taxes.
CLIMATE PROTECTION
Environment Minister Svenja Schulze (SPD) commissioned four institutes to carry out a study on how climate protection can be advanced as part of the economic stimulus program. This involves the renovation of buildings or the reduction of environmentally harmful subsidies. The minister specifically promoted government grants for the conversion of fleets and faster expansion of green electricity. She also wants to drive "green" hydrogen.
EXTENSION OF INFRASTRUCTURE
The infrastructure in Germany needs to be modernized. This applies to dilapidated railway lines and bridges, but also to digitization and the energy transition. It often takes years before transmission or electricity poles are built. This means that there is still often poor reception, especially in rural areas, and the expansion of wind power is stagnating. Therefore, not only should planning and approval procedures be accelerated, more money is also conceivable. Transport Minister Andreas Scheuer (CSU) wants to invest around 28 billion euros in rail traffic, road construction and digital infrastructure, among other things. "Investing in the future of mobility - strengthening the transport sector, investing in digitalization and modernization, shaping the mobility of the future" is the title of the concept from his company.
DISPUTES ABOUT COSTS
The federal government has already borrowed enormously from the corona pandemic at 156 billion euros - but the economic stimulus package is likely to require additional loans. How much more can it cost? CSU boss Markus Söder wants the federal government to take up a maximum of 100 billion euros in additional debt in order not to "ruin" the state. At the SPD, such a limit met with rejection.