In conversation: Federal Chancellor Olaf Scholz with Foreign Minister Annalena Baerbock and Finance Minister Christian Lindner (from left)
(Photo: Getty Images)
Berlin The traffic light has decided on an aid package worth billions for the citizens. This is the coalition’s response to the sharp rise in energy prices. According to the Federal Statistical Office, consumers had to pay 20.5 percent more for energy in January than a year earlier.
The prices for heating oil (plus 51.9 percent) and natural gas (plus 32.2 percent) rose particularly sharply in a year-on-year comparison. And after the escalation of the Ukraine conflict, experts expect that gas prices in particular could rise sharply again: Russia is Germany’s most important gas supplier.
The new relief package, which the federal government still has to get through the Bundestag and Bundesrat, comprises ten points. These add up to an amount in the double-digit billions. Here is an overview of the decisions:
The green electricity levy does not apply
Instead of in the coming year, the so-called EEG levy is to be eliminated without replacement as of July 1st. It’s about 3.723 cents per kilowatt hour of electricity, which customers no longer have to pay – more than ten percent of the final price.
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According to the decision paper, the coalition expects the electricity providers to “pass on the full extent of the relief”. Federal Finance Minister and FDP leader Christian Lindner put the relief for electricity customers through the abolition at 6.6 billion euros.
The commuter allowance increases
At the beginning of the negotiations, it was disputed whether the commuter allowance would increase. The Greens, in particular, were skeptical. Now there is a compromise: the flat rate for long-distance commuters will be raised from 35 to 38 cents retrospectively from January 1, 2022.
This applies from the 21st kilometer and therefore only affects employees who live further away from their place of work. It is particularly about the people in rural areas, said SPD leader Saskia Esken.
It was also agreed that a reorganization of the commuter allowance should be sought during this legislative period, which should take better account of the “ecological and social concerns” of mobility, as Green Party leader Ricarda Lang emphasized.
Employee lump sum is increased
Part of the compromise on the commuter allowance is that the employee allowance will be increased. All employees benefit from this. It should increase retrospectively to January 1st by 200 euros to 1200 euros.
It is about relieving the “working middle”, said Finance Minister Lindner. He estimated the relief effect of this measure at around one billion euros.
At the same time, the so-called basic allowance is to be increased by 363 euros. This is the amount that is not taxed. According to Lindner, this will save taxpayers around 2.9 billion euros.
Corona grant for recipients of social benefits
All recipients of unemployment benefit II, social assistance or basic security should receive a one-off payment of 100 euros. According to the draft resolution, almost five million people are affected. Children affected by poverty should receive an immediate bonus of 20 euros.
Further measures
In addition, the coalition refers to decisions that have already been made. This includes the Corona aid in the tax legislation with the extended loss account, the degressive depreciation or the extended home office flat rate of 600 euros per year as well as the Corona rules for short-time work benefits and the heating cost subsidy. It should be 135 euros for housing benefit recipients and 115 euros for apprentices and students.
According to Lindner, the new tax relief that the traffic light has agreed on add up to around four billion euros. In addition, there are payments such as the subsidy to social welfare recipients. According to the information, tax relief and grants together account for around seven billion. They will now be incorporated into the 2022 budget, which is currently being negotiated in the federal government.
The early abolition of the EEG surcharge is financed by the energy and climate fund, in which the coalition had built up a large reserve.
More: Robert Habeck: The EEG levy is to be abolished as early as this summer