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Sigmar Gabriel sharply criticizes SPD leadership for blockade of purchase premiums: "Green Populist Politics"

2020-06-06T07:30:54.627Z


The corona crisis is weighing on the economy, which is why Groko decides to launch an aid program. Ex-SPD leader Sigmar Gabriel receives harsh criticism.


The corona crisis is weighing on the economy, which is why Groko decides to launch an aid program. Ex-SPD leader Sigmar Gabriel receives harsh criticism.

  • The corona crisis has a major impact on the economy.
  • Despite various easing , the economy is not picking up steam.
  • The grand coalition wants to step in with an economic stimulus package.  

Update from Saturday, 06.06.2020, 8.30 a.m .: Former SPD chairman Sigmar Gabriel has accused his successors Saskia Esken and Norbert Walter-Borjans of abandoning the automotive industry . With a view to the categorical rejection of a purchase premium for diesel and petrol cars in the negotiations with the Union over an economic stimulus package, the SPD frustrated its former regular clientele. 

"After the employees of the energy sector, the social democracy with its rather green populist rejection of subsidies for the auto industry is giving up the next part of its classic electorate," said Gabriel the Tagesspiegel (Saturday). "Climate policy has become more important to them than representing workers' interests." 

+++ 11.15 am: Bank President Martin Zielke has rated the federal government's corona stimulus package as a “courageous signal for a new start for the economy”. "It is a clear message for companies and consumers," said the Commerzbank boss in his role as President of the Federal Association of German Banks (BdB) on Thursday. 

"The extensive package of measures is balanced - it secures jobs and helps companies equally," said Zielke. "It will strengthen the population's confidence in the economic recovery and boost consumption in the short term."

The left criticize the stimulus package

+++ 9.10 clock: The left in the Bundestag has criticized Groko's corona stimulus package as expensive and not very targeted. "The principle of 'expensive watering can' has prevailed," parliamentary group leader Dietmar Bartsch told the press on Thursday. "With these measures, however, the government has failed to do justice to the greatest economic crisis in decades: A lot of piecemeal and flash in the pan, not very accurate, not sustainable and unbelievably expensive." 

There are sensible decisions for municipalities and families in the 130 billion euro package . However, the Groko is more concerned with its compromises than with the problems of the people, the temporary reduction in VAT is "economically senseless". Life would neither be socially nor economically safer for the citizens. It is also unclear who will pay the bill, Bartsch said. "I don't hear anything from the federal government." A multimillionaire tax and a major tax reform are needed .

Corona crisis in Germany: stimulus package is in place - VAT cut

Updated on Thursday, 04.06.2020, 06:20:  reduction in VAT (from 1 July until 19 percent to 16 percent and for the reduced rate of 7 per cent to 5 per cent as at 31 December 2020), aids (for local failures trade tax revenues for 2020 and 2021 are offset by the federal and state governments), subsidies for families (one-off payment of 300 euros per child), and higher purchase premiums for electric cars: the leaders of the grand coalition agreed on a huge stimulus package for 2020 and later on Wednesday evening 2021 in the amount of 130 billion euros. The federal government accounts for 120 billion, as Chancellor Angela Merkel (CDU) said afterwards. 

This is intended to boost the economy and consumption of citizens again and avert a severe recession as a result of the corona pandemic . After short-term aid in the Corona crisis  , some of these economic stimuli now extend far beyond the current legislative period. 

The federal government has to incur new debts to cover expenditure . Finance Minister Olaf Scholz (SPD) spoke of a supplementary budget without mentioning the scope. According to CSU leader Markus Söder, this in no way leads to the country becoming over-indebted, and also not to the fact that the country is unable to act or the next generation is overloaded. 

Corona crisis in Germany: negotiations on stimulus package continue

Update from Wednesday, 03.06.2020, 12.15 p.m .:  The leaders of the grand coalition have continued their negotiations on a multi-billion euro stimulus package in the Corona crisis. Participants said on Wednesday that the core issues had not yet been resolved. This includes incentives to buy cars from taxpayers' money, the assumption of old debts by the municipalities and tax relief. 

The participants did not expect a quick agreement. Rather, the consultations could continue into the night.

Corona crisis in Germany: No agreement on economic stimulus package in sight

Update from Tuesday, June 2, 2020, 4:34 p.m .: No agreement is yet in sight regarding the comprehensive economic stimulus package of the grand coalition. There was a great need for advice - therefore, according to information from coalition circles, all sides agreed to interrupt the negotiations before midnight.

According to information from the German Press Agency, the talks should then continue on Wednesday morning (June 3, 2020) after the cabinet meeting at around 10 a.m. The reason given was that people wanted to talk about the various individual topics without time pressure.

There are around 60 suggestions to be discussed, said SPD leader Norbert Walter-Borjans before the negotiations began. "It will take a long time and probably will not end today." There are already proposals that can be agreed, but also topics on which the opinion between the SPD, CDU and CSU diverge widely.

Coalition advises on stimulus package: scrappage bonus is a point of contention

First announcement on Tuesday, June 2nd, 2020, 1:52 pm: Berlin - On Tuesday (June 2nd, 2020 ) the leaders of the  grand coalition will  meet in the Berlin Chancellery for talks. A billion-dollar stimulus package is to be advised, which is intended to   cushion the negative consequences of the  corona crisis . There are suggestions on the table to support families, companies and municipalities.

Among other things, a car purchase premium to support the auto industry and help for municipalities are being discussed. Families should also be supported with a children's bonus in order to increase purchasing power. The amounts 300 and 600 euros fell in advance.

Corona crisis: incentive to buy cars controversial

The so-called scrappage bonus is particularly controversial. So has SPD -Parteichef Norbert Walter-Borjans before the deliberations against a purchase premium for cars pronounced with internal combustion engines. His party refuses "that even tax rebates on diesel and petrol already produced should be paid by the taxpayer," he said in the ZDF morning magazine.

Rather, government aid should be used to “lead technology into the future”. Cars with conventional technology should not be cheaper at the expense of taxpayers. 

Climate activists comment on the corona stimulus package

The climate activists at Fridays For Future made similar comments. The Grand Coalition should in its economic plans in Corona times have the actual quality of life and the interests of people in mind and not the interests of large corporations. 

▸ € 9 billion for Lufthansa
▸ € 5 billion purchase premium for new cars (planned)
▸ € 5 billion scrappage bonus 2009

If they say that there is no money for climate protection, culture, nursing staff, education, families and children: Yes, but it is somewhere else ¯ \ _ (ツ) _ / ¯

- Coffee Cup (@kaffeecup) June 2, 2020

The current crisis should not be used politically as an excuse against an ambitious climate protection policy and a functioning welfare state. It is now just a matter of consistently setting the course for a socio-ecological turnaround that takes everyone along and leaves no one behind. 

Coalition advises on economic stimulus package - economy against scrapping premium

The Monika Schnitzer economy also spoke out against the scrappage bonus. "The greatest danger of an incorrectly designed economic stimulus program is that it stops the necessary structural change," explained the Munich professor in the "WirtschaftsWoche". "It's wrong for so many reasons that I don't even know where to start."

This project is also controversial within the Union. While the Baden-Württemberg CDU leader Thomas Strobl sees this as an important impetus for the auto industry , Union parliamentary group leader Andreas Jung rejects an old-school bonus. 

Support for municipalities in the corona crisis

Federal Finance Minister Olaf Scholz (SPD) spoke out to support the local authorities . Among other things, he wants to help the municipalities by assuming old debts. Walter-Borjans also emphasized that the “old debts that hinder investing are getting away” and should be transferred to the federal and state governments.

However, this project is rejected by the Union group. It suggests that the federal government should contribute more to the accommodation costs of Hartz IV recipients and suspend the trade tax levy for two years.

Over 7 million people work short-time because of Corona 

The Munich Ifo Institute said that almost all sectors of the economy are affected by the corona crisis. In May, 7.3 million people in Germany were on short-time work . "This number has never been so high," said Ifo labor market expert Sebastian Link on Tuesday. "In the financial crisis, short-time working peaked in May 2009 at just under 1.5 million people." 

(with agency)

The federal government's stimulus package * contains a surprising number of good approaches. But it cannot be the end of the turn. The editorial.

* fr.de is part of the nationwide Ippen-Digital editors network.

List of rubric lists: © picture alliance / dpa / Alexandra Wey

Source: merkur

All news articles on 2020-06-06

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