The federal government is defending the recently approved “fuel discount” against criticism from economic scientists. Deputy government spokesperson Steffen Meyer stated to the dts news agency on Friday that while economic perspectives are certainly relevant and important, they are just one possible way of looking at the issue.
Meyer emphasized that a key objective was to send a clear signal at the gas pump, specifically to provide swift support to individuals who rely on their cars and cannot easily switch to public transportation. The decision, he noted, was made only a few days ago.
Furthermore, the Federal Ministry for Economic Affairs, which had previously criticized the possible fuel discount in recent months, has now backed the measure. A spokesperson told dts that the action is a unified government undertaking and that the ministry “absolutely stands by it.” The representative also noted the importance of the states participating, adding that the ministry is therefore supporting the decision.
The fuel discount was previously dismissed as shortsighted by economist Veronika Grimm, who warned that the policy would ultimately lead to a loss of prosperity. Stefan Kooths of the Kiel Institute for the World Economy (IfW) argued during the presentation of a major economic research diagnosis on Thursday that although the measure may be popular, it “is not sensible.” He pointed out that the “price signal” is lost, a signal that typically encourages consumers to conserve resources during times of scarcity. Kooths concluded that in the end, people ultimately pay for these supposed gifts themselves.
