2023-09-05 20:28:00
Robert Habeck, Federal Minister for Economic Affairs and Climate Protection and Vice Chancellor
In a television program, Habeck criticized the minimum wage increase as too low.
(Photo: IMAGO/photothek)
Berlin Federal Economics Minister Robert Habeck has described the increase in the minimum wage as too low. The Greens politician commented on Tuesday’s program “RTL Direkt Spezial – Am Tisch mit Robert Habeck” when asked by a citizen who described the different percentage increases in the minimum wage and citizen’s income as unfair.
Habeck said that was basically “difficult or impossible to justify”. According to Habeck, the citizen’s income is automatically raised “according to the statistics”, based on price increases for food or clothing.
When it came to the minimum wage, he referred to a commission made up primarily of employer and employee representatives. The minimum wage increase does not correspond to the increase that comes with citizen income, said Habeck. The citizen, a metalworker, has an absolutely correct point here.
“I would say for myself that the minimum wage increase is too low.” He discussed the program with two citizens and one citizen. The statutory minimum wage in Germany is to be increased by 82 cents to 12.82 euros over the next two years.
Labor and Social Affairs Minister Hubertus Heil (SPD) had announced that he would implement a corresponding proposal by the Minimum Wage Commission, according to which the minimum wage should increase from the current 12.00 to 12.41 euros on January 1, 2024 and a year later to 12.82 euros – what ever means an increase of 3.4 percent.
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The employee representatives on the commission had described the increase as too low, but were outvoted. The more than five million recipients of citizen benefits are to receive noticeably higher benefits in the coming year.
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From the beginning of 2024, single people should receive 563 euros per month instead of 502 euros today. According to Minister Heil, this is an average increase of a good twelve percent.
CDU leader Friedrich Merz had criticized the increase in citizen money. “We have a problem with the so-called wage gap requirement,” said Merz on ARD. The government punishes performance, he told Funke media group newspapers. And further: “If you get the impression that it makes no difference whether you work more or less, you will try less.”
Habeck confident about the economic future
Economics Minister Habeck was basically confident about the prospects for the German economy in the RTL program. With a view to the economic downturn, he said: “We are in a very challenging situation.” But there are political answers and solutions. The federal government has already given some. Others are still pending. “We can get out of there. We’ll get out of there.”
Christian Lindner and Robert Habeck in the Bundestag
In view of the coalition with the FDP, Habeck does not assume that the debt brake will be reformed in this legislative period.
(Photo: dpa)
Habeck has been campaigning for a transitional phase for a state-subsidized industrial electricity price for a long time – the SPD parliamentary group as well as trade unions and many business associations also want that. According to Habeck, as a result of the Russian war of aggression against Ukraine, the average electricity price for the energy-intensive industry is about twice as high as before the crisis.
The Vice Chancellor said he was very much in favor of a debt brake in Germany. However, he believes that it is “too strict or inflexible”. With regard to the coalition partner FDP, Habeck said that there would be no reform of the debt brake in this legislative period. The industrial electricity price could be fed from other pots.
Habeck suggested financing the industrial electricity price from the Economic Stabilization Fund. The energy price brakes are paid from this. Because of the lower prices, the brakes cost less than expected.
Finance Minister Christian Lindner (FDP) made it clear again on Tuesday in the Bundestag that he rejects opening the fund. Changing the purpose of the fund would not be constitutionally permissible. The FDP also rejects an industrial electricity price.
Chancellor Olaf Scholz (SPD) is also skeptical. To stimulate the economy, the federal government recently launched plans for tax relief for companies. In addition, bureaucracy should be reduced.
More: How France keeps the price of electricity low for industry
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