The Chancellor and the social partners prepare the people in Germany for difficult times – the consequences of Russia’s war threaten to become more and more threatening.
The federal government and social partners want to work together to prevent an imminent downturn in Germany. “The current crisis will not be over in a few months,” said Federal Chancellor Olaf Scholz (SPD) after the start of the concerted action in the Chancellery in Berlin.
Employer President Rainer Dulger said: “We have difficult years ahead of us.” It is about preventing a recession, pointed out DGB boss Yasmin Fahimi. The results of the dialogue initiated by Scholz with the social partners should be available in autumn.
Scholz referred to Russia’s war in Ukraine and the supply chains disrupted by the pandemic. The result is general uncertainty. “We have to be prepared that this situation will not change in the foreseeable future,” said Scholz. “We are facing a historic challenge.” Scholz: “As a country, we will only get through this crisis well if we join hands, if we agree on solutions together.” The message is important to him: “We stand together.”
Employer President Rainer Dulger said: “This country is facing the toughest economic and socio-political crisis since reunification.” The crisis can only be overcome together. “Constant economic growth, as we experienced before Corona and the Ukraine war, is no longer a matter of course.” DGB boss Yasmin Fahimi said: “It’s about the perspective of 2023, and it’s all about doing everything now to prevent a recession, to stabilize locations, to maintain value chains and to secure jobs.”
Inflation not driven by wages:
Scholz emphasized that the first thing to do was to develop a common understanding. Accordingly, Fahimi and Dulger found that inflation is currently not wage-driven. “Wages are currently not a driver of inflation, but people are feeling the inflation,” says Dulger. The collective bargaining partners could absorb part of the inflation for the employees. “That doesn’t happen in the Chancellery,” emphasized Dulger. Similar warnings had come from trade unions in advance.
“We are currently seeing the inflation drivers on the supply side: energy costs, scarcity of raw materials, missing intermediate products due to interrupted supply chains,” said Dulger. Energy taxes and network charges could be good levers to get rising energy prices under control.
Different accents:
Fahimi praised the effects of the previous relief packages with a volume of 30 billion euros. An average employee household is relieved according to their information by 1000 euros. “Nevertheless, the burden on private households goes well beyond that.” In advance, Fahimi had called for an energy price cap.
Dulger emphasized that by reducing taxes and social security contributions, politicians can ensure that citizens get “more net from the gross”. The employers had also proposed eliminating the so-called cold progression in taxes. It is the job of employers to keep the economy and job market stable. “That in itself is a (…) Herculean task,” said Dulger. “In the company, we currently don’t know which fire we should go out first.”
This is how it should go:
Scholz spoke of a “good start” and confirmed that such meetings should now take place at regular intervals. Well-trodden paths had to be abandoned. It needs a “spirit of community”. According to a government spokesman, there should be results in the fall.
One-time payment and redistribution:
The unions were not very enthusiastic when it was reported that Scholz wanted to relieve the employees with a one-off payment. Businesses should pay the duty-free. Unions should exercise wage restraint. But Scholz rejected the reports at the weekend.
The Greens and social organizations insisted on relief for the needy and low-income earners. Your deputy parliamentary group leader Andreas Audretsch brought a contribution from the particularly wealthy into play. “Everyone must now ask themselves how they can make a contribution,” Audretsch told the German Press Agency. “This is especially true for those who have a lot, for the richest.”
FDP against more spending and higher taxes:
Finance Minister Christian Lindner rejects more debt and higher taxes. This “would be toxic and an impoverishment program,” said the head of the FDP to the German Press Agency. Strong increases in government spending are also out of the question for him. “A central contribution of the state is to avoid additional price pressure through solid finances.” The state must combat the causes of inflation. “At the same time, we should reduce price-driving subsidies and do everything we can to make energy cheaper.”
More suggestions:
The social climate money proposed by Minister of Labor Hubertus Heil (SPD) should come back to the table in the concerted action. According to the proposal, climate money should be paid once a year – for single people who earn less than 4,000 euros gross per month, and for married couples with a total of less than 8,000 euros. The CDU social wing called for a reduction in VAT on staple foods.
The new Linke chairmen Janine Wissler and Martin Schirdewan demanded a price cap for staple foods in the “Süddeutsche Zeitung”. The Federal Association of Small and Medium-Sized Businesses is not satisfied with the concerted action. Managing director Markus Jerger told the broadcasters RTL/ntv that a social summit was needed, which also included logisticians, producers and medium-sized companies.
Source: Stern
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