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Basic security: The Greens are demanding an increase of 10 percent

2022-06-17T18:27:53.786Z


Because of the high inflation, the Greens propose, according to SPIEGEL information, to permanently increase basic security such as Hartz IV. You want a buffer on top of the ruleset so it doesn't fall below the subsistence level.


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Green parliamentary group leader Audretsch: Don't count on falling prices

Photo: IMAGO/Uwe Geisler / IMAGO/Future Image

Because of the high inflation, the Greens are proposing to permanently increase basic state security.

"In view of the skyrocketing prices for basic foodstuffs, we want to systematically protect people on basic security with an inflation and crisis reserve," said the vice-chairman of the parliamentary group, Andreas Audretsch, to SPIEGEL.

»We want to add a reserve of 10 percent to the calculated standard rate.

That would currently be around 45 euros per month - in addition to the regular adjustment as of January 2023.« This is not about a one-off adjustment, but about a permanent mechanism to create a kind of buffer against rising costs in addition to the standard rate.

The adjustments to the Hartz IV rate and the basic security in old age to inflation are insufficient, said Audretsch.

Due to their speed and the time delay in the calculation, the standard rate slipped below the subsistence level at the end of the year.

The same happens when unexpected short-term expenses arise.

The new reserve is intended to counteract this in the long term, especially as energy and food prices are expected to continue to rise sharply.

In May, the inflation rate was 7.9 percent.

Energy in particular has become extremely expensive, but food prices have also risen – partly because the costs for fertilizer and cultivation are also increasing.

»It is not to be expected that the price increases for fossil energy such as gas will slow down any time soon.

That will also continue to have an effect on the groceries,” said Audretsch.

As an additional relief, the Greens continue to call for a reform of the income tax.

However, this should not leave any gaps in the budget, says Audretsch.

»Those with very large incomes are able to make a moderate additional contribution given the difficult situation.«

jos

Source: spiegel

All news articles on 2022-06-17

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