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Rising energy costs: the government's relief package is taking shape

2022-03-22T17:58:05.521Z


Finance Minister Christian Lindner has promised "further relief" in view of the high energy costs. According to SPIEGEL information, the working group set up for this purpose is about to reach an agreement.


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Driving in Germany has recently become more and more expensive

Photo:

Wolfgang Maria Weber / IMAGO

Energy prices in Germany have continued to rise in recent weeks.

Now the so-called relief package announced by Federal Finance Minister Christian Lindner is apparently taking shape.

As SPIEGEL learned from coalition circles, the negotiating group set up for this purpose has both a broad basis for extensive relief and measures to strengthen Germany's energy policy independence.

More than half of Germany's gas needs and almost a third of its oil needs have so far come from Russia.

Lindner had previously announced in the budget debate that the coalition was in agreement.

"Further relief will come," said the FDP leader in the Bundestag.

The coalition is currently advising on different models.

Now it appears that a rapid consensus is emerging.

In Berlin, the finance minister pleaded, among other things, for further aid for recipients of basic social security in view of the rising food costs.

But the broad middle of society is also burdened with mobility.

Lindner expects “that in the end a combination of different instruments will be used”.

The 43-year-old had previously suggested a subsidy when refueling.

After that, funding “with the watering can” without a social component was criticized in many cases – Economics Minister Robert Habeck (Greens) had also dismissed the idea.

New borrowing, special assets, supplementary budget

So far, Lindner is planning new debt of 99.7 billion euros for 2022.

However, this is likely to increase significantly: the finance minister confirmed his plan in the Bundestag to present a supplementary budget as soon as possible.

It is intended to show further state reactions to the Russian war of aggression in Ukraine.

However, the FDP chairman announced that he would comply with the debt brake again from 2023.

He is counting on “that in the coming year there will no longer be an emergency”, which would allow an exception to the debt rule in the Basic Law.

Compliance with the debt brake is then a "command of our constitution," said Lindner.

Outside of the federal budget, the Bundeswehr special fund announced by Chancellor Scholz is to be set up in the current year.

It is said to have a volume of 100 billion euros, financed by loans.

The point here is to "strengthen the Bundeswehr, which has been neglected for many years," said Lindner.

Criticism from the Union

The opposition criticized the budget plans.

CSU regional group chief Alexander Dobrindt accused Lindner of having presented a budget draft with large gaps.

Even with the high energy prices, Lindner failed to come up with clear plans to relieve the burden on the public.

"Reduce the taxes at the pump," Dobrindt demanded.

He reiterated the Union's proposal to reduce VAT and mineral oil tax.

The parliamentary director of the Union faction, Thorsten Frei, criticized the fact that the federal government was not planning to increase the defense budget in addition to the planned 100 billion euro special fund.

The Union will not agree to the necessary constitutional changes in connection with the Bundeswehr program without increases in the defense budget.

cte/svs/dpa/AFP

Source: spiegel

All news articles on 2022-03-22

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