What relief is coming?

The federal and state governments are advising again

Created: 01/11/2022, 16:00

The federal and state governments want to advise again on relief.

© Monika Skolimowska/dpa-Zentralbild/dpa/Symbolbild

Consumers and companies are hoping for further relief in the energy crisis.

But there is stress between the federal and state governments about their financing.

What are the topics?

After an unsuccessful meeting, the federal and state governments are under pressure to deliver results this Wednesday on financing the planned relief measures worth billions.

"People finally want to know what relief there will be in the coming winter months," said Schleswig-Holstein's Prime Minister Daniel Günther (CDU) before the new appointment with Chancellor Olaf Scholz (SPD) of "Welt".

"Another delay, another postponement of decisions would be absolutely unacceptable."

At the previous meeting, the heads of government from the federal and state governments parted ways in early October without reaching an agreement.

It was not only about the planned gas price brake, but also about the successor to the 9-euro ticket, the acceptance of refugees, housing benefits and the financing of hospitals.

The federal states criticized the federal government because it had decided on relief without talking to them - even though they were supposed to contribute billions.

They demand commitments for refugee financing and money for local transport in order to have enough room in the budget for their share of the relief package.

Mecklenburg-Western Pomerania's Prime Minister Manuela Schwesig (SPD) expects the meeting to reach an agreement on specific aid.

"Tomorrow it must be finally clarified between the federal and state governments when and to what extent the gas price brake will come, what it looks like specifically for citizens and companies," Schwesig explained on Tuesday.

"The citizens and companies in our country now need reliability and planning security."

Schwesig once again clarified the position of the heads of government of the federal states: The gas price brake should come into force before March.

The electricity price brake must also come as soon as possible.

What has happened since then

The federal government has presented ideas on how gas and electricity prices should be pushed down.

The Bundestag has already approved debts of 200 billion euros.

The countries had previously criticized that nobody knew exactly what the money should be used for.

In addition, the federal government presented forecasts on economic development and tax revenue.

Result: The economy is heading into a recession, but things are set to pick up again in 2024.

The tax revenue is probably higher than expected, but according to Finance Minister Christian Lindner (FDP), it is already largely planned.

According to estimates, the countries will take in a billion less next year than was thought in the spring.

Gas price brake plans

Citizens and companies are to be relieved of the high energy costs in two steps: On the one hand, the state takes over the December discount with a one-off payment.

A commission on behalf of the federal government has also proposed a price brake: the gas price for large industrial customers is to be capped on January 1st and for private individuals on March 1st.

For 80 percent of the previous year's consumption, the price could then be reduced to 12 cents per kilowatt hour.

If you use more, you have to pay more.

However, the March date is much too late for the federal states.

They are also demanding cheap gas for private households by January 1st.

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Other savings in heating costs

At a Prime Minister's conference in Hanover almost two weeks ago, some also called for relief for consumers who heat with oil or wood pellets.

Due to the large number of providers, one cannot construct a state cost brake here, said Günther.

"But I think a reduction in VAT on these fuels is necessary in view of the price development."

Successor solution for 9-euro ticket

There has been agreement for months that there should be a nationwide follow-up model after the end of the popular 9-euro ticket.

The federal and state transport ministers have basically already agreed on a price of 49 euros.

A start on January 1st is planned.

Problem: the money.

Numerous federal states are demanding more federal subsidies for local transport.

In principle, the federal states are willing to finance the new ticket, which is valid throughout Germany, together with the federal government - both sides would probably have to provide around 1.5 billion.

However, the federal states make it a condition that the federal government also permanently gives more money for buses and trains because of the high energy prices.

Otherwise, offers may have to be reduced.

Refugee accommodation costs

Hundreds of thousands of people fled the war from Ukraine to Germany.

In addition, more refugees are coming via the Balkan route.

The states are demanding that the federal government support them more.

They want the federal government to contribute to the costs of accommodation and heating in the basic security for jobseekers again, like last year.

This does not only apply to refugees, but there are also many people from Ukraine among the recipients of these benefits.

They would also like more financial help for the care of unaccompanied minors.

At a refugee summit with state and local government representatives in mid-October, Federal Interior Minister Nancy Faeser (SPD) ignored financial issues and referred to the prime ministers' conference.

However, it offered the federal states additional federal buildings for the accommodation of refugees.

Lindner was convinced that he would find a solution.

Housing benefit financing

It is still disputed how the significant expansion of housing allowances planned by the federal government is to be financed.

In January, the state rent subsidy is to increase by an average of 190 euros per month - it is also to be paid to 1.4 million more citizens.

So far, half of the housing allowance has been financed by the federal and state governments, but the states no longer want to participate.

Controversy over citizenship

Citizens' income as the successor to Hartz IV was actually planned long before the relief packages - but the traffic light coalition sometimes mentions it in the same breath.

It could therefore come up at the Prime Ministers' Conference because the Union-led countries are threatening to block the introduction in the Bundesrat.

The dispute could prevent an understanding on other points.

dpa