Up to 48 million people will be the recipients of the economic relief presented today as a proposal by the Ministry of Finance aimed at compensating for high inflation. Central to Finance Minister Christian Lindner’s announcements today are tax cuts and increases in basic welfare and child benefit. The reactions, however, are already intense and come mainly from within the governing coalition and the workers.
According to the minister’s proposals, the tax reduction will exceed 10 billion euros, while the average relief is estimated at 192 euros. “People are worried about inflation. With the fear of rising gas and food prices, the situation calls for action,” Mr. Lindner said.
The Finance Ministry’s plan was, however, considered controversial within the governing coalition, with the Social Democrats (SPD) and the Greens calling for greater relief for the lowest income earners. “The additional tax burden would not be fair in the current sensitive situation and would also be dangerous for economic growth,” commented Mr Lindner, who leads the third government partner, the Liberals (FDP).
“The finance minister’s proposals must be improved from a social justice point of view,” said SPD Parliamentary Group vice-chairman Achim Post, pointing out that Mr. Lindner’s plan would disproportionately benefit high-income earners, where they have been hit so far. especially the mids and lows. On the side of the Greens, the vice president of K.O. Andreas Outrets criticized the plan as “unrealistic”, stressing that the highest incomes would benefit three times more than the small and medium ones.
On the contrary, the Christian Union (CDU/CSU) expressed satisfaction with the finance minister’s proposals. The representative of K.O. on economic policy Julia Kleckner said there was room for improvement, “but the plans are in the right direction”, while she accused the two other government partners of “rebutting the proposals in advance”. The government “must decide, instead of constantly arguing,” said Mrs. Kleckner.
Trade unions have already voiced their opposition, with their Confederation (DGB) rejecting the proposals as too narrow. The DGB asked for an increase in the basic allowance from 9,984 euros per year to 12,800 euros. Mr. Lindner’s proposals “benefit the high earners and the wealthy, although they face much less problems than price increases,” commented DGB chief Stefan Kertzel.
Source: Capital
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