A chunk of money without taxes and duties – but lower wage increases: The idea should prevent a “wage-price spiral”. She probably doesn’t stand a chance.
After criticism of the idea of a tax-free one-off payment to relieve citizens of rising prices, Chancellor Olaf Scholz distanced himself a bit. In an interview by n-tv and RTL on Tuesday, the SPD politician referred to the planned “Concerted Action” talks.
When asked about the plan for the one-off payments, he said: “What we specifically agree on must then result in the meetings in detail. And I also ask that you accept this reluctance in this matter.”
Scholz wants to dampen prices
Scholz has invited unions, employers and experts for next Monday. The Concerted Action has its model in similar discussions in the 1960s and 1970s. Scholz wants to curb the rapid rise in prices. In addition, government circles had confirmed the idea of tax-free – i.e. favored by the state – one-off payment from employers at the weekend. Unions should exercise restraint in the next wage round. The plan had been attributed to Scholz.
Trade unionists immediately objected. They do not want any interference in collective bargaining. Finance Minister Christian Lindner (FDP) also has reservations because tax exemption would mean a loss of income.
Green Group Vice President Andreas Audretsch told the Ippen-Media network: “It must be answered why people with very high incomes should receive state support in companies that make good profits.”. It also remains open how the self-employed or employees in non-tariff companies should be helped.
The President of the German Institute for Economic Research, Marcel Fratzscher, criticized in the “Augsburger Allgemeine” (Tuesday): “One-time aid will only help in the short term, but will not be able to relieve people with low incomes permanently.” Higher wages and social benefits are the only sustainable way.
Two relief packages have already been launched
CSU financial politician Sebastian Brehm told the editorial network Germany: “Scholz is trying to cover up the fact that his coalition is going completely haphazardly on the summer break when it comes to further relief.” Union faction leader Friedrich Merz warned on ZDF about new social benefits that would be financed by debt.
The new left boss Martin Schirdewan said to RTL / n-tv: “The unions have to go into the upcoming collective bargaining with high demands so that inflation and the development of purchasing power for the employees are cushioned.”
In the television interview, Scholz pointed out that two relief packages totaling 30 billion euros had already been launched for people who needed immediate help. “But that will remain an issue for a long time,” said the Chancellor. That’s why he invited to the concerted action. “And we want to discuss common strategies so that the citizens can cope with these challenges.”
Source: Stern
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
