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Energy costs: bickering about refueling

2022-03-13T20:05:43.801Z


Fuel is more expensive than ever, gas as well, food costs could also rise - Putin's Ukraine war is driving up prices in this country. Politicians are arguing about relief. But a real solution is not yet in sight.


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Gas station price board

Photo: IMAGO/Marius Bulling / IMAGO/onw-images

A shaky mobile phone video made the Prime Minister of Saarland a laughingstock on social networks these days.

Tobias Hans had positioned himself on a street, in the background a gas station, the diesel price was 2.12 euros.

A point had been reached, Hans scolded the camera, at which action had to be taken.

"This does not only affect low earners, it really affects the many hard-working people who have to fill up," the CDU politician continued.

A “fuel price brake” is needed, the state is enriching itself from the high energy costs.

Hans received massive criticism, the regulars' tone, the effort to cuddle up to the normal population - for many observers, Hans' little Twitter film was simply a transparent election campaign maneuver.

Especially since the Saar-CDU is now also printing the demand on posters.

In any case, the assumption is obvious: the prime minister and his party are threatened with a debacle in the state elections in two weeks given the lousy poll numbers.

Consequences of the Ukraine War

Of course, Hans has a point in this.

The prices for refueling have recently exploded.

In March 2021, a liter of Super still cost an average of around 1.45 euros in Germany, but according to ADAC it was already more than 2.20 euros in the middle of this week.

Ascending trend.

For diesel, the jump is even bigger.

The petrol pump has become a symbol of what the Russian invasion of Ukraine has done to this country.

Many things are becoming dramatically more expensive, not just fuel.

Sanctions against Moscow and concerns about an import ban are also causing gas prices, which are already steep, to climb further.

And groceries could also cost significantly more in the future, for example if grain deliveries from Ukraine fail.

The pressure on politicians to do something to relieve the burden on the citizens is growing.

The only question is: what?

A fierce dispute over money has long since broken out between the parties.

The opposition, in particular, has seen the issue as an opportunity to push the government along with steep demands for which you don't have to take any responsibility yourself.

Example: Markus Söder.

Opposite the "Bild am Sonntag" Bavaria's CSU Prime Minister formulated his wishes for the traffic light coalition in Berlin.

First and foremost: an abolition of VAT on petrol and diesel.

"It's just immoral that the state also earns a lot from rising energy prices with VAT," said Söder.

Value added tax must be reduced "immediately" from 19 to 7 percent and then maybe even reduced to 0.

Lindner rejects VAT reduction

It is a demand that is quite popular, of course in the Union - but industry representatives also express similar views.

However, there is opposition from the government, from Christian Lindner of all people, head of the FDP, the party that is usually the first to come forward when it comes to calling for any tax cuts.

"If the Union calls for a so-called fuel price brake, then they have to say what they want to cut in the budget," said the finance minister to the "Tagesspiegel".

»Or she has to admit that she is willing to take on new debts.«

Lindner added on Twitter on Sunday that he was committed to “structural tax relief”.

But quick solutions are needed now.

In any case, reservations about a reduction in VAT remain high.

In the case of tax cuts, "there is no guarantee that these will also reach consumers and the economy," said SPD parliamentary group leader Matthias Miersch of the "Rheinische Post".

The government factions are now happy to refer to the relief package that was only agreed on in February.

It is said that this has not yet had its effect.

As of July 1, the EEG surcharge on the electricity price is to be abolished, the commuter allowance will be increased, and the poor will receive a one-off payment.

Only: In view of the dramatic developments of the past few days, the impression is becoming stronger in the capital that this is not enough to calm people in the country.

Old campaign hits

But when it comes to the question of what to do next, opinions differ.

Rather, leading politicians these days rely on old campaign hits.

Green leader Ricarda Lang, for example, repeated her party's demand for energy money in the "Bild am Sonntag".

"Many people suffer very acutely from the rising prices, when heating, at the pump or in the supermarket," she said.

With the energy money, everyone has more money in their account.

In fact, the representatives of the eco-party negotiated the term "climate money" into the coalition agreement, but the concrete form is still completely open.

So the idea shouldn't bring quick relief.

SPD-Left calls for “mix of measures”

In the SPD, on the other hand, there is pressure to increase the already agreed heating subsidy of 135 euros again.

According to SPD circles, there is fundamental agreement on this in the coalition, so there is a sum of more than 200 euros in the room.

On Monday, the building committee meets in the Bundestag, then there could be more clarity on the question.

In general, the SPD-Leftists plead for a "mix of measures that not only addresses energy prices but also income, and thus primarily supports people with small and medium-sized incomes."

That's what it says in a paper that the leadership of the "Parliamentarian Left" (PL), the largest current in the SPD parliamentary group, agreed on Sunday and that SPIEGEL has seen.

In addition to the higher heating cost subsidy, this included a "tightening of antitrust and competition law, the capping of gas and other heating cost prices, short-term adjustments in the minimum income schemes."

It is at least questionable whether these things will all go down well with the liberal coalition partner, although the PL is also open to reducing income tax for small and medium-sized income earners and a temporary reduction in sales tax.

In any case, Finance Minister Lindner may be pursuing other goals for the time being, such as a “tank discount” as planned in France.

The "Bild" newspaper reported on Sunday evening about a corresponding project in the Ministry of Finance.

Accelerated financial debates

Either way, the fight against skyrocketing prices and their consequences could ultimately be a kind of fire accelerator for financial policy debates, which are far from over in the new coalition.

In any case, the next big confrontation with the political competition is imminent.

Another prime ministerial conference is scheduled for next Thursday.

The round of country heads should also deal with energy prices.

Those Union politicians who have recently been particularly loud are also there: Markus Söder and Tobias Hans.

Source: spiegel

All news articles on 2022-03-13

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