Economists are criticizing the federal government’s plans aimed at easing the burden on citizens. Marcel Fratzscher, President of the German Institute for Economic Research (DIW), told the “Rheinische Post” (Tuesday edition) that the package of measures exhibits “a clear social imbalance”. He added that the announced relief measures related to energy prices are insufficient and, in some parts, counterproductive. He pointed out that the temporary cut in energy tax on gasoline and diesel carries the risk that a significant portion of the relief will not reach consumers but will instead land in the accounts of oil corporations. Furthermore, he argued that it creates misleading incentives because it does not support the necessary reduction in energy consumption in road transport, which could increase price pressure elsewhere.
Fratzscher also stated that the tax-free one-time payment of up to 1,000 euros by employers is not a precisely targeted tool. He suggested it primarily benefits employees in larger, more financially robust companies, while many other groups, such as the unemployed, pensioners, students, or employees in small businesses, will miss out. Previously, Monika Schnitzer, Chairwoman of the Wirtschaftsweisen, had already voiced criticism of the government’s plans.
In contrast, the social wing of the CDU welcomed the relief measures. Radtke told the newspapers of the Funke Media Group (Tuesday editions), “We can state that a good start has been made”. He mentioned that the possibility for companies to make tax- and contribution-free one-time payments had already been introduced into the debate three weeks prior.
Meanwhile, Dirk Wiese, parliamentary head for SPD, sees the coalition’s decisions as a clear reflection of his party’s influence. Speaking to the “Rheinische Post” Wiese said, “We have provided the crucial impetus from the social democratic side and are very satisfied with the results”. He expressed relief that all sides had returned to a “constructive working mode”.
According to Wiese, the citizens in the current difficult situation will be “quickly and visibly relieved where the pressure in everyday life is greatest”. These measures include the 1,000 euro relief bonus for employees, the temporary reduction in fuel prices, and the “important decision to significantly relieve small and medium incomes until next year”. He also noted that progress has been made toward collecting “excess profits” from oil companies at the European level. Wiese concluded by saying, “Vice Chancellor Lars Klingbeil’s initiative is proving effective”.
