In view of the price increases in Germany, Federal Minister of Social Affairs Hubertus Heil (SPD) pointed out the limits of state intervention. “The state cannot compensate for everything for everyone,” Heil told the magazine “Stern” against the background of current demands for a reduction in VAT.
This Wednesday evening, the coalition leaders in Berlin wanted to discuss what options could be taken in the fight against price increases in the coming weeks.
Heil said: “Basically, I don’t see any scope to relieve people who have a very high income.” He was open to discussing different measures that specifically relieve people with low and normal incomes. “We have to cushion the consequences of the price development specifically for the people for whom it really is an existential threat,” said the SPD politician.
As SPD parliamentary group leader Rolf Mützenich announced on Tuesday, the coalition committee should also serve to prepare the “concerted action” with politicians, employers and employees. Heil said that in the “concerted campaign” there should be “concrete agreements on what the respective partners can contribute”.
On the initiative of Federal Chancellor Olaf Scholz (SPD), a “concerted action” is to be held on July 4th to jointly discuss the price increases. The planned votes are named after the historic “Concerted Action” from the 1960s.
In his own words, Heil does not assume that inflation will continue in the long term. “I hope that many prices will return to normal in the coming year,” he said. Nevertheless, long-term support is needed for the unemployed and people on low incomes, as permanently high energy prices are to be expected.
Against the background of the Russian war of aggression in Ukraine and the consequences, Heil said: “We will not allow Putin to divide our society.”
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