Germany: Will 300 billion euros of aid be enough?
The total amount that Germany plans to spend to help citizens and the economy in the current crisis is 295 billion euros. Who will be helped, how and how much? Everyone asks themselves these questions.
His voice is still a little hoarse, but Chancellor Olaf Scholz has already recovered from covid and held a meeting with the premiers of the 16 German states, which was actually supposed to happen a week ago.
Many things needed to be clarified, and not only because of the planned restriction of the price of gas. A "gas price brake" has been talked about in Germany for some time. The coalition of the SPD, the Greens and the FDP talks about protection from the consequences of the Russian war of aggression. In any case, the German government wants to spend 200 billion euros to reduce prices.
Good idea, but no details
Provincial premiers think this is essentially a good idea. Because they see first-hand the direct consequences of energy prices on citizens and companies every day in cities and regions, and are under enormous pressure because of it.
That's why she's angry because there are still no details on how that gas price brake is actually supposed to work.
The specially created expert commission is still looking for a solution. Information leaked that the idea is for citizens to pay 70% or 80% of last year's gas consumption at a reduced price, and the rest at the new prices, and that the gas providers do not agree with this.
"We are working on it even over the weekend," said the chancellor, who expects "the first results to be available as early as next week." And the government will react "immediately." "Everyone needs to be clear about what the relief that applies to them will look like specifically."
This statement did not calm everyone down. Before this meeting, the Prime Minister of North Rhine-Westphalia, Henrik Wiest of the CDU said: "In a crisis you need certainty, in a crisis you need clarity." No one knows exactly what the package contains, and everyone rejoices."
After the meeting, Whist said disappointedly, "We're none the wiser now, either."
It is too much for the provinces to pay 45 billion euros
There is almost no progress in the dispute between the federal government and the provincial governments regarding the financing of further aid packages for citizens and companies, which are expected to cost a total of 95 billion euros.
The federal government will take half of this amount and together with the defense shield it would be 240-250 billion of the total projected 295 billion Scholz said commenting: "It is a decent amount provided by the federal government."
This means that the provinces have to provide the remaining 45 billion euros – an obligation that they do not want to accept so easily. Some have already threatened to block the Bundesrat. The provinces headed by SPD prime ministers did not want to go so harshly.
The Prime Minister of Lower Saxony, Stephan Weil, said that citizens would not want politicians to argue in this situation and that he is confident that they will manage to bridge the ranks between all levels of government. But the social democrat Valj also sees the need for concrete solutions, that is, clarifications.
Everyone needs more money
On the one hand, it is unclear how the financing of hospitals that are financially exhausted due to the corona pandemic and are struggling with the poor staffing situation will go. In addition, they are now faced with the question of how to pay their energy bills.
It is also a question of how public transport will be financed in the future. The citizens liked the 9 euro ticket that could be used to travel throughout the country this summer, so they would like it to continue. Options for how something similar could be implemented are being considered. The provinces unsuccessfully asked the federal government for an additional 1,5 billion euros for investments in the field of public transport.
High costs arise also due to the constant increase in the number of refugees. "When winter comes, when the cold and damp penetrates the ruined houses in Ukraine, more people will come to us," said the prime minister of North Rhine-Westphalia. In many cities and towns, the accommodation facilities are already full, and in many places the gymnasiums and other temporary accommodation are busy again. Chancellor Olaf Scholz promised last night that by the end of the year it will be clarified how the government can financially support the provinces when it comes to refugees.
Stefan Weil, who presides over the conference of the prime ministers of the German states, said after the meeting that the rest of the decisions, that is, a package of laws, should be expected at the beginning of November, that is, December at the earliest.
In Brussels, he is angry with Germany
The German government must explain the measures and submit an account to Brussels as well. The planned brake on the price of gas caused an outcry there as well.
"While Germany can afford to borrow 200 billion euros on the financial markets, some other EU members do not," European Industry Commissioner Thierry Breton wrote on Twitter, announcing a review of the measure by the European Commission.
A level playing field must be guaranteed in all 27 EU countries and therefore urgent consideration should be given to how poor member states can be offered opportunities to support their industries and companies.
The German chancellor does not approve this request.
"European Commissioner Breton certainly looks around, including in the country he comes from (aka France), so he knows that we are not the only country taking such measures, which by the way we have the right to do," said Olaf Scholz in Berlin .
The text is taken from Deutsche Welle.
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