Diakonie fears for social institutions because of high prices

Created: 10/09/2022, 1:00 p.m

Can an energy price cap help relieve social institutions?

© Fernando Gutierrez-Juarez/dpa-Zentralbild/dpa

The high energy prices weigh on everyone.

Social institutions are particularly at risk, warns Diakonie President Lilie.

The taxpayers' association warns of burdens for future generations.

Berlin - With a view to the high energy prices, the President of Diakonie Germany, Ulrich Lilie, warns of dangers for the continued existence of social institutions.

"The social infrastructure is threatened with collapse," Lilie told the editorial network Germany (RND/Saturday).

As a rule, these are non-profit institutions that, for legal reasons, are hardly allowed to build up reserves and now do not know how they should pay for the increased electricity and gas prices.

"They have their backs to the wall and cannot wait months for an energy price cap," said Lilie.

Federal Family Minister Lisa Paus (Greens) advocated using the planned multi-billion dollar “defense shield” for social institutions as well.

Demand for help in the fall

According to RND, Lilie also asked the traffic light coalition to bring forward aid for low earners and recipients of social benefits to the fall.

"These people often live from hand to mouth because they never had the chance to build up wealth." They have no way of compensating for the high energy and food prices.

It is good and right to increase the standard rate for the new citizens' allowance or housing benefit from January, as the traffic light government is planning.

"But that's too late," Lily said.

Minister Paus assured in the newspapers of the Funke media group (online Saturday, print Sunday) that the effects of the energy crisis on facilities and providers are being considered.

"Because charitable institutions such as the food banks, advice centers or protective facilities are essential for the cohesion of our society."

If they can no longer shoulder the exploding energy costs, it will hit the weakest - "Children, young people, old people, low-income families," Paus listed.

"That's why we have to open the economic defense shield so wide that the social infrastructure finds protection under it as well as the associations and initiatives of civil society."

Warning of future debt burdens

Meanwhile, the taxpayers' association warned of future debt burdens and called for savings in the federal budget.

"The crisis policy, which is currently largely financed by credit, lays the seeds for future budget crises," said association president Reiner Holznagel to the editorial network Germany (RND/Saturday).

"That's why the federal budget needs a radical austerity program - quickly and permanently."

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The traffic light coalition had announced a “defense shield” of 200 billion euros to support consumers and companies.

Among other things, a gas price brake is to be financed from this.

The money should not come from the regular budget, but - financed by new loans - from the Economic Stabilization Fund (WSF).

This special fund was formed during the Corona crisis to save larger companies and is now being revived.

Holznagel pointed out that between 2020 and 2022, loans of 485 billion euros were taken out to deal with the corona pandemic.

Of this, 378 billion euros would have to be repaid under the rules of the debt brake.

In addition, there would be the loan-financed special fund for the Bundeswehr of 100 billion euros and now the 200 billion euros.

"The associated annual repayment obligations are gradually approaching the 20 billion euro mark and will be thrown at the feet of the next generation of politicians and future taxpayers," criticized Holznagel.

overcome the debt brake

DGB boss Yasmin Fahimi, on the other hand, welcomed the 200 billion special fund - and at the same time called for "overcoming the rigid and thus counterproductive debt brake in the federal and state governments".

The situation is extremely tense due to the Russian gas supply stop, Fahimi told the "Rheinische Post".

"What else has to happen before everyone understands that the debt brake in the federal and state governments is only slowing down our future prospects?"

Fahimi argued that there was a lot of catching up to do when it came to investments in transport routes and digitization, in healthcare, in schools and universities.

She called for more financial commitment from the federal states, for example in education and infrastructure.

"The states could, like the federal government, suspend the debt brake in 2022 and create special funds for the future," she suggested.

dpa