The Coalition of Chancellor Scholz has reached an agreement to generate an envelope of 65 billion euros, for the benefit notably students, retirees and job seekers.
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The delivery was long, but the promise was held, at least on paper. As he had engaged, the German government presented a “massive” plan on Sunday, September 4, to support purchasing power in the face of the rise in prices and the risk of social outbreak agitated by the extremes, on the right as from the left. In the amount of 65 billion euros, this plan – the third since the start of the war in Ukraine – is alone twice as important as the first two cumulated, adopted in February and May.
Detailed in a thirteen-page document completed late at night, after twenty-two hours of negotiations between the three partners of the Chancellor’s coalition, Olaf Scholz, this plan is primarily addressed to the most modest. Among the measures are thus the cap in the price of the basic electricity consumption, the payment, at 1 er December, of an energy check of 200 euros to students and 300 euros for retirees and The increase in the number of beneficiaries of the housing allowance: from 1 er 2023, it will be paid to 2 million people, against 640,000 today. On this date is also planned a revaluation of the basic allowance for job seekers, who will drop from 449 to 500 euros per month.
To finance this plan, the German government intends in particular to use companies which produce electricity from coal, nuclear or renewable energies, but which take advantage of the gazing of the gas course, because that it determines the price of electricity. To set up this “sample on random profits” -preferred name to “tax on exceptional profits”, which the Social Democrats (SPD) and the Greens, but whose Liberals (FDP) did not want -, Berlin wants an agreement to be reached at European level in the coming days. If this is not the case, Germany will not hesitate to make a rider alone, however warned Olaf Scholz.
call to the unit
In many ways, the measurement train that the latter unveiled, on Sunday, is reminiscent of the one he presented, in March 2020, to deal with the economic consequences of the COVVI-19. Then Angela Merkel Minister of Finance, the social democratic leader had struck the spirits at the time, announcing a rescue plan of unprecedented magnitude (150 billion euros), which he himself had qualified as “bazooka”. Two and a half years later, the effect of surprise is comparable – rare were those waiting for aid as high as that mentioned on Sunday -, and the message is the same: convince the Germans that their government has the priority Absolute to protect them.
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