The war in Ukraine not only has an impact on fuel prices, but will probably also affect food prices. Baden-Württemberg’s finance minister is now calling for help for the poor.
Baden-Württemberg’s Finance Minister Danyal Bayaz is demanding more financial aid for the poor and families from the federal government because of rising energy and food prices.
“We are facing difficult times,” said the Green politician of the German Press Agency in Stuttgart. Due to the Russian war of aggression in Ukraine and its consequences, energy prices continued to rise, and groceries such as grain became more expensive. “We have to specifically cushion the economic impact socially, especially for people with low incomes, a small pension or for families.” From his point of view, a “socially graded energy money” would be the right measure. “That would be a direct payment to citizens.”
The idea for an energy money comes from the Greens program for the federal elections. Originally, the party wanted to return the increase in the CO2 price and the associated higher prices for petrol, diesel and heating oil to the citizens. Bayaz now wants to rededicate this measure in view of the war and its economic consequences for Germany. The Green politician also admitted: “But the state will not be able to compensate for every price increase. This war will cost us all prosperity.”
It was only in February that the heads of the federal traffic light coalition decided on several relief measures in view of skyrocketing prices for gas, electricity, oil and fuel. In addition to additional payments for poorer families, the basic allowance, flat-rate income tax allowance and, limited to 2026, the commuter flat-rate for long-distance commuters are to be increased in the tax return retrospectively from the beginning of the year. That means fewer taxes are deducted. In addition, the so-called EEG surcharge for green electricity will be removed from the electricity bill in July and financed through the federal budget.
Source: Stern
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