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Christian Lindner wants a relief package

2022-08-19T05:06:08.536Z


How can relief for rising gas prices be distributed fairly? Finance Minister Lindner has three priorities. The social associations are skeptical.


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Federal Finance Minister Christian Lindner

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Michele Tantussi / AFP

Federal Finance Minister Christian Lindner considers a third relief package in the "low double-digit billion amount to be achievable".

In the "Rheinische Post" (Friday), the FDP leader named three priorities.

“First, it's about the needy, second, about the working middle class, and third, about the energy-intensive economy.

We need suitable instruments for each of these three areas,” said Lindner.

Citizens' allowance and housing benefit would help the needy, the inflation adjustment against the cold tax progression would protect the middle.

There will have to be targeted economic aid for energy-intensive companies, said the finance minister.

However, Lindner rejected special help for pensioners.

"Fortunately, pensions have increased significantly this year," said the FDP politician.

Like everyone in the basic security system, needy pensioners would have received a special payment, and there is also a heating subsidy for housing allowance.

Pensioners also benefited from the abolition of the EEG levy on the electricity bill.

Chancellor Olaf Scholz (SPD) emphasized in Berlin on Thursday that the relief package should alleviate the great pressure that is weighing on many citizens and companies.

"We'll discuss exactly what the package looks like in the government.

The question of justice is crucial so that the country sticks together in this crisis." The SPD party executive wrote on Twitter in the evening that the third relief package was in the "final votes".

Social association VdK insists on excess profit tax

Social associations and the Verdi services union reacted critically to the reduction in VAT on gas from 19 to seven percent.

"The VAT reduction relieves everyone, including those who don't need it at all," the joint association said to the "Rheinische Post".

Instead, the association spoke out in favor of “specific help for those who can no longer pay their gas bill”.

The social association VdK welcomes the reduction in VAT on gas announced by the federal government.

It roughly balances out the gas surcharge.

“That's good for households suffering from high gas prices.

But that is bad for the national budget.

We urgently need to talk about income now, otherwise there will be no basic child security, no good basic income and no relief for caring relatives," said President Verena Bentele.

She spoke out in favor of an excess profit tax on high company profits caused by the crisis as counter-financing.

Bentele said Lindner must finally think seriously about an excess profit tax and a property levy in order to have money to relieve the most vulnerable.

»In addition, it must be ensured that this time the tax cut really reaches the people.

It must not go back to the way it was with the tank discount.« Lindner rejects an excess profit tax.

The federal government wants to reduce VAT on natural gas for a limited period of time.

Scholz emphasized that he expects companies to pass the tax cut on to consumers one-to-one.

The reduced VAT rate of seven percent should apply as long as the state gas levy is levied, i.e. until the end of March 2024. With the gas levy, importers can pass on higher procurement costs due to the Ukraine war to consumers from October.

mfh/dpa/AFP

Source: spiegel

All news articles on 2022-08-19

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