The German government is working “day and night” on the third package of support measures. Facing a new European Recovery Fund for energy, modeled after the pandemic?
The dramatic increase in energy prices that has brought about a “tsunami” in the cost of living is creating insecurity for the citizens of Germany, who have to make ends meet on the same wages. What mainly concerns them is the expiration at the end of August of two measures that proved to be successful. This is the 9 euro monthly urban and interurban transport card. For three months, more than 30 million Germans traveled within Germany with this card per month, to the point where a proposal was made to extend the period, which remained as a proposal. The other measure was the so-called “petrol pump discount”, i.e. the fuel tax discount (34 cents for petrol and 17 for diesel), which after initial failures kept the price of fuel below 2 euros.
More “psychological safety”
So from September 1st a new reality begins and citizens in Germany want to know what else the future has in store for them. In an interview with today’s Osnabrücker Zeitung, the general secretary of the Social Democratic party, Kevin Kinnert, shows understanding for the “impatience” of the citizens and re-assures that the package with the new measures will be ready for discussion within “a few days”.
“Significant and targeted relief measures are needed,” he points out in the newspaper, making special mention of those who are completely dependent on the car for their transportation. “Whether a flat-rate mileage allowance or a specific amount is ultimately given is something that will be decided at the negotiating table.” Kevin Kinnert also gives a new dimension, which may be included in the new package, which concerns not only the financial, but also the psychological side.
“We can also provide more security without spending a single euro,” added the social democratic politician. “A moratorium on tenancy cancellations, avoiding power and gas cuts in winter, greater protection for tenants in the event of rent rises: All these measures cost the government nothing, but would at least remove some of the existential worries of many people.” he stated.
And pensioners in the third package
Speaking to citizens in Leipzig yesterday, as well as in an interview with the public television station MDR, Chancellor Soltz said that the third relief package under consideration will include for the first time the pensioners, who were left out of the “nymphon” in the previous two.
It should be noted that according to the latest statistics in Germany there are just over 21 million pensioners. “We have made it our goal to ensure that everyone who needs support is supported. In addition to families, pensioners and students, tax relief should also be given to those who make money but are forced to count it accurately.”
Soltz assured companies that short-time work will remain as a crisis management tool. “Short-term work can be used at the moment and the Labor Minister has already said that it will continue to be used,” the chancellor stressed. Solz assured that in the third package the government will make proposals that concern everyone. “We are working day and night to mitigate the effects of inflation.”
And as the war in Ukraine that caused the energy crisis continues, the question is how much longer the German and European citizen will bear the financial burden. Speaking on the Tagesschau.de website, Rene Repassi, a Social Democrat MEP and professor of European law at the University of Rotterdam, warned that the economic and social consequences of the war would “plunge us into a deep economic and social recession” or require a lot of public money. sector to deal with the impact.
And yes, Germany still has its own resources, but countries like Spain and even France have accumulated a large fiscal debt. Already, some MEPs are calling for an EU investment program with common debt underwriting on the model of the Pandemic Recovery Fund to tackle problems in energy supply by investing in new production capacity.
Irini Anastasopoulou
Source: Deutsche Welle
Source: Capital
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