For their money, the inhabitants of Germany can afford less and less every day, their value is melting like ice in the sun.
According to BILD, in November, purchases cost the Germans an average of 5.2% more – the highest increase in almost 30 years. Especially consumers are forced to fork out for energy. According to current statistics, prices for fuel, electricity and the like are currently on average 22.1% higher than in 2020.
The new federal government of Germany, which one of these days will begin to fulfill its duties, will have to fulfill its promises to curb inflation, reduce taxes and other things. Indeed, since the summer, inflation has significantly exceeded the target of 2%. This hit hard on the wallet of ordinary people in the country.
“Due to different buying behavior, inflation affects the poor more than the wealthy, the elderly more than the young,” says Markus DeMary of the Institute for German Economics (IW).
The Germans expect protection from inflation from the government of the new chancellor, Olaf Scholz. According to former economist Professor Peter Bofinger of the University of Würzburg, CO2 taxes should not be raised further. “The government can suspend the increase in the carbon tax. When oil prices return to normal, the rise in CO2 prices can be offset, ”he said.
The CO2 quota is now € 25 per tonne and is expected to rise to € 30 from January. Economist Marcus DeMary is in favor of tax cuts. “One way to make life easier for low-paid employees who depend on cars is to reduce their transport or energy tax,” he said. – After all, even the European Central Bank cannot do anything about the rise in energy prices. Most likely, oil prices will continue to rise. “
Professor Kerstin Bernot of DIW recommends the introduction of purchase vouchers: “The federal government may temporarily issue consumer vouchers for low-paid workers.” However, the European Central Bank (ECB) has a commitment, she said. “The challenge for the ECB is to intervene and tighten its monetary policy if inflation stays at this high level longer than expected,” notes Kerstin Bernot.
And the future treasurer of the “traffic light coalition” Christian Lindner promises: “There will be a decline in electricity prices soon.” “No tax increase.” “No price increases.” “Refund to the population of additional costs associated with the price of CO2.”
The Germans are waiting for these promises to be fulfilled.
Germany says this:
Measures to combat coronavirus will be tightened again
Fine up to € 500 for violation of 3G rules and restrictive measures
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