The cost of living is increasing rapidly. Massive wage increases to compensate could, however, continue to drive inflation. The government wants to discuss ways out together with employers and employees. One could be tax-free special payments instead of high wage agreements
According to a report, Chancellor Olaf Scholz wants to propose a tax and duty-free one-off payment by employers to compensate for the increased energy costs. This should be transferred next year, reported “Bild am Sonntag” (“BamS”). In return, the unions should waive part of the wage increases in collective bargaining rounds.
On July 4, the federal government wants to discuss joint measures against high inflation with trade unions and employers. Scholz announced this so-called “concerted action” at the beginning of June to prevent a wage-price spiral. “Many things that we buy have become more expensive. Food, but especially the price of energy. We notice that at the gas station, we notice it when we have to pay the heating bill. Heating oil, gas, everything is much more expensive than it used to be a year ago. That’s why we have to prepare for it,” said Scholz in his video message “Kanzler compact” before the G7 summit in Elmau. Germany must agree with others what needs to be done.
The idea of ??cushioning the rising prices with one-off payments was also brought up by SPD parliamentary group leader Rolf Mützenich. “If employers and unions agree on one-off payments to employees to cushion particularly difficult moments in the coming months, then the state could also make a meaningful addition to this,” he told the newspapers of the Funke media group. However, he also emphasized: “We will not be able to cushion everything.”
From the government’s point of view, “BamS” also speaks in favor of the one-off payment that it reaches the citizens quickly and employees with low and medium wages benefit the most. However, since only 43 percent of employees are paid according to the collective agreement, separate solutions are still needed for employees who are not bound by a collective agreement and pensioners with a small pension. That is currently being worked on.
In May, the German inflation rate reached 7.9 percent, its highest level since the winter of 1973/1974. According to economists, the end of the road in price development should not yet be reached – especially if Russian gas deliveries fail to materialize.
SPD leader Lars Klingbeil also spoke out in favor of relieving pensioners. “As the SPD, we want something to happen for pensioners,” said Klingbeil at a state party conference of the Saxony-Anhalt SPD in Leuna. This should be discussed in the traffic light coalition. The party leader referred to the previous relief measures. However, the question needs to be discussed as to whether the state can do more to support people in the crisis. The government is already trying to relieve the burden on citizens with the tax reduction when filling up, the 9-euro ticket, a flat-rate energy price in September/October and other measures.
Economists are calling for more targeted use of aid. With a view to the tank discount, the “economy” Veronika Grimm said of the DPA: “Attempts were made to make fossil fuels cheaper – with moderate success. You have to cushion that for those who cannot bear this hardship.” Marc Schattenberg, an economist at Deutsche Bank Research, also warned: “The support for needy households could be even more targeted than it was last.”
Federal Finance Minister Christian Lindner made it clear that the state could not absorb every price increase. “Further relief measures would have to move within the framework of the debt brake,” affirmed the FDP politician in the “Rheinische Post”. He emphasized that in an economic downturn, higher borrowing is also permitted. Lindner will present his draft budget to the cabinet on July 1.
