In conversation: Federal Chancellor Olaf Scholz with Foreign Minister Annalena Baerbock and Finance Minister Christian Lindner (from left)
(Photo: Getty Images)
Berlin Christian Lindner (FDP) spoke of a “clear double-digit billion amount” with which the traffic light coalition wanted to relieve citizens in view of the high energy prices. These were the first estimates that the Federal Minister of Finance announced on Wednesday evening after the SPD, Greens and FDP had agreed on ten measures.
In the meantime, the officials from the Federal Ministry of Finance have calculated more precisely. An exact breakdown is circulating in the traffic light coalition as to what the individual measures will bring to citizens – or how expensive they will be for Lindner. The paper is available to the Handelsblatt.
After that, the relief totals 15.6 billion euros. The tax cuts account for 7.1 billion euros. Another eight billion euros must be raised from the federal budget, for example for increasing subsidies or to finance the elimination of the EEG surcharge.
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. According to the decision paper, the coalition expects the electricity providers to “pass on the full extent of the relief”.
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The relief volume for electricity customers is 6.6 billion euros. This sum is financed from the Energy and Climate Fund (EKF), in which the traffic light coalition has created a reserve worth billions.
The commuter allowance increases
It was controversial in the traffic light coalition whether the commuter allowance will increase. The Greens, in particular, were skeptical. The compromise provides for the flat rate for long-distance commuters to be raised from 35 to 38 cents retrospectively from January 1, 2022. But the effect is small: According to the paper, it is only a relief of 300 million euros annually.
The lump sum for long-distance commuters 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.
Employee lump sum is increased
Part of the compromise on the commuter allowance was 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.
For taxpayers, this means a relief of 1.1 billion euros – and for the state a corresponding loss of revenue. It is about relieving the “working middle”, said Finance Minister Lindner.
Increase in the basic allowance
Another traffic light agreement was hardly noticed by the public, but it will have a big effect: the so-called basic allowance is to be increased by 363 euros. This is the amount that is not taxed. It will be 10,347 euros in the future.
According to the overview, this will save taxpayers around 3.1 billion euros a year. This measure is the second largest after the abolition of the EEG surcharge.
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. The costs for the federal government thus amount to a one-off amount of 500 million euros.
Children affected by poverty should receive an immediate bonus of 20 euros per month. This should be paid permanently until the traffic light has agreed on the introduction of the so-called basic child security. In the current year, the immediate surcharge, which is to be paid from July 1, totals 334 million euros. After that, it amounts to 668 million euros per year.
Further measures
In addition, the coalition refers to decisions that have already been made. This includes the Corona help in tax legislation with the extended loss statement for companies, the degressive depreciation or the extended home office flat rate of 600 euros per year. According to the overview, these measures add up to 2.6 billion euros.
In addition, the Corona rules for short-time work benefits will be extended. This will cost the Federal Labor Office around 450 million euros.
The traffic light also counts the increase in the heating cost subsidy that has already been decided on as part of the relief package. It should be 135 euros for housing benefit recipients and 115 euros for apprentices and students. Total volume: 189 million euros.
The traffic light praised their decisions. “We don’t leave people alone in the current situation,” said Lindner. Greens Chairwoman Ricarda Lang added: “This is a strong package that we have an offer for the whole of society, and I think it offers a form of security anchor for the people in this country, especially in difficult times.”
Criticism came from the opposition. “Even after the decision of the coalition, the state earns more from the skyrocketing energy prices through taxes and certificates than the traffic light now wants to give back for relief,” criticized the energy expert of the Union faction in the Bundestag, Andreas Jung (CDU). The CSU financial expert Sebastian Brehm said: “Red-green-yellow leaves the people out in the rain who keep our country running with their work and thus ensure that money comes into the state coffers.”
More: Robert Habeck: The EEG levy is to be abolished as early as this summer