How much relief for the economy is possible?

Berlin DIHK President Peter Adrian makes no secret of his disappointment: “Every day more companies are fighting for survival,” he told the Handelsblatt. There are “large gaps” in the relief package put together by the coalition on Sunday.

Business has the impression that the coalition is doing a lot for pensioners, students and families, but little for companies. Or worse: that companies are even additionally burdened by the coalition resolutions, as with the renewed increase in the midi job limit.

The traffic light promises the economy to continue the low-interest loan and liquidity programs of the federal and state governments as well as the energy cost subsidies until the end of the year. The economy does not get any new aid for the time being.

The responsible Federal Ministry of Economics has not forgotten the companies, it has just had to grapple with a conflict of objectives for months: How much help is possible without dissuading companies from saving gas and electricity? “Unlike in the corona crisis, we cannot cushion all hardships and price signals,” said the Federal Government’s SME Commissioner and State Secretary for Economic Affairs, Michael Kellner.

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The economy will definitely be helped, for example by the extension of short-time work benefits, the electricity price brake and income tax cuts, from which owner-managed companies in particular would benefit. “The relief package contains a number of measures for the economy and especially for medium-sized companies,” said Kellner.

Fast support required

But that’s not enough for the associations: “Planned relief for companies must come very quickly now, otherwise it will be too late for many companies that the energy price explosion has already brought to the brink of existence,” said the President of the ZDH trade association, Hans Peter Wollseifer .

Even before the Meseberg cabinet meeting, the ZDH had submitted a proposal to the federal government as to how energy costs for small and medium-sized companies could be cushioned by means of an energy price brake and direct hardship aid.

Since there should be no new aid, the focus is now on the energy cost containment program. Because the government wants to expand the possible recipient group. Business hopes are high.

So far, only energy-intensive industrial companies whose sector is on the so-called Kuebll list can take advantage of the program and receive energy cost subsidies of up to 50 million euros. In the days before the relief package was agreed, it was said that this rule would not be shaken. Now the program should be opened – but how far is unclear.

>> Also read here: Employers – “Expansion of the welfare state cannot be an answer to rising energy prices”

Economist Lars Feld, who is chief advisor to Finance Minister Christian Lindner (FDP), already fears “gateways that run counter to solid state finances as well as energy saving targets”. The federal government must be extremely careful with the enlargement. But whether this cautious line will last is questionable.

Lars Feld

The economist urges caution with the relief package.

(Photo: IMAGO/photothek)

The requirement associated with the Kuebll list is that the company must compete internationally so that it cannot pass on the energy costs to customers in the form of higher prices.

However, the SPD is increasingly taking the view that the burdens are now too high even for companies that are in local competition. “I’m taking Federal Economics Minister Robert Habeck at his word to give even more support to those companies that are particularly suffering from the high energy prices,” says Hannes Walter, Vice-Chairman of the Economic Committee.

burdens instead of relief

It is not just the energy-intensive industry that is affected: “I’m thinking of the master baker, for example.” DIHK boss Adrian sees it similarly: “Larger energy consumers outside of industry fall through the grate.” There are hotels, restaurants and retail an “enormously large number of affected companies”.

>> Also read here: Electricity price brake, direct payments, higher child benefit and local transport ticket – this is how the coalition wants to relieve the burden on citizens

Employers are threatened with burdens instead of relief as a result of the planned further increase in the midi job limit to EUR 2,000 from January. The coalition had just decided that the limit should rise from 1,300 to 1,600 euros from October. The aim of the reform was to relieve employees in the transitional area between mini-job and full employment subject to social security contributions from social security contributions – at the expense of the employer.

This now threatens to continue if the earnings threshold is raised further: “Even raising the midi job limit to 1,600 euros was a mistake,” criticizes employer president Rainer Dulger. “The expansion that has now been decided leads to an even further shift in the burden of social security contributions towards employers.” This means that the government is increasingly moving away from the self-propagated goal of equal financing.

Craft President Wollseifer also thinks the project is a mistake: “Burdents in a relief package really can’t be the solution to keep businesses alive.”

More: Beware of the savior state – nobody says who should pay

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