Germany is heading for a third relief package after the first two of 30 billion euros. There are many proposals on the table with an emphasis mainly on additional energy and housing allowances.
Under increased pressure from an increasing number of social actors, the opposition as well as economic institutes and market players in Germany, the German government is already considering new measures that could be included in the third relief package.
German Chancellor Olaf Scholz has already announced it. It is, as everything shows, the necessary continuation of the two major relief packages of 30 billion euros, which are already in place, but many of which are of a temporary nature and are expected to expire soon. For example, the monthly card of 9 euros for urban transport or the discount on petrol and diesel tax expire at the end of August, while many of the benefits already provided for are in the form of one-off payments for employees, freelancers, unemployed, students and beneficiaries of social assistance .
To these are already added compensatory measures, the most important of which is the reduction of the VAT for natural gas, as a tax counterbalance to the additional gas tax that consumers in Germany are required to pay from October 1
What is being discussed about the third relief package
What exactly is on the coalition government’s consultation table for the third package? These are mainly measures of a subsidized nature and tax reductions taking into account the increase in inflation, which is already at 7.5%. The German government is expected to put its hand in its pocket and give “hot money” mainly to those social groups that are most in need.
One of the additional moves being hotly debated is the fundamental reform of the legislative framework for the provision of housing benefits in Germany. The General Secretary of the Social Democrats party, Kevin Künert, speaking to the n-tv network, said that the new package is a matter of days, stressing that after the two current packages in focus, additional energy and housing allowances should now be found along with new tax breaks.
The reform of the income conditions for the payment of housing allowances in Germany is also considered necessary by the German Tenants Association, with its head Stefan Ziebecknoten considering it necessary mainly for low and medium incomes under the burden of extraordinary conditions.
Will the super profits of energy companies be taxed?
A proposal on the table also comes from the important German Institute for Economic Research, with its head Marcel Fratcher deeming it necessary to provide stable financial support to the lower and middle classes, e.g. with an energy allowance of 100 euros per month due to high inflation and increased energy prices.
Finally, a crucial issue, on which there is currently no convergence of all three parties in the co-government, is that of the possible taxation of the surplus profits of companies in the energy sector. More and more executives of the Social Democrats and the Greens consider such a move correct, with the Liberals opposing it.
Dimitra Kyranoudis, Berlin
Source: Deutsche Welle
Source: Capital
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