The SPD federal chairman also sees the reason for the inflation in increased profit margins.
(Photo: dpa)
Berlin Critics accuse corporations of exploiting high inflation to optimize profits – and the SPD and the Greens are alarmed. Representatives of the parties now want to take a closer look at corporate profits. So SPD leader Saskia Esken can imagine the establishment of a new state unit that takes a closer look at these profits.
Data collected so far allow arguments for and against allegedly unjustified price increases as a reason for inflation. In April, the price surge in the euro zone increased slightly again. Consumer prices increased by 7.0 percent compared to the previous year. Esken told the Handelsblatt that the main reasons for the high prices are the Ukraine war, rising energy prices and supply bottlenecks.
However, the prices “have risen in part because companies have significantly increased their profit margins,” said the SPD politician. “Anyone who just puts off increased costs to increase their profits is acting indecently. It is unacceptable that families have to skimp on food to make ends meet while businesses keep prices high.”
Esken said it’s important to “continue to closely monitor price developments and their composition within each industry.” First of all, it is the task of the Federal Cartel Office to analyze how price increases come about.
However, the SPD leader did not rule out further steps. The Spanish government has already done this and has created a state entity that is supposed to combine data from different institutes and calculate and publish the margin per industry.
Green politician warns of “profit-price spiral”
“New ways are currently being explored in Spain to obtain more precise information about price developments. I think that makes sense,” said Esken. “More transparency is only to be welcomed at this point.”
The Green coalition partner is also increasingly warning of a so-called “profit-price spiral”. Green Group Vice President Andreas Audretsch said that one had to be careful “that some companies do not make extra profits from the crisis through excessive price increases”.
The leader of the Green Group fears that some corporations will enrich themselves through excessive price increases.
(Photo: IMAGO/Future Image)
Audretsch sees the Federal Cartel Office as primarily responsible here: “As a traffic light, we agree: we need antitrust law with more bite.” That is why the coalition has launched a reform of the law against restraints of competition. The law has already passed the federal cabinet and has yet to be passed in the Bundestag.
The aim of the reform is to give the Federal Cartel Office the opportunity to act more quickly after examining markets in detail. “This prevents profit-driven inflation and guarantees consumers fair prices,” said Audretsch.
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The Federal Ministry of Finance, on the other hand, sees no reason to take further steps. “Inflationary developments and their drivers are being continuously observed by the Federal Ministry of Finance,” said a spokesman.
Many different factors determined inflation, such as uncertainties on the world market, especially in the energy sector, disrupted supply chains and catch-up effects in consumption. There was also “no evidence that the development of corporate profits is a key driver of inflation,” said Minister Christian Lindner (FDP).
The focus of the work of the Federal Ministry of Finance is rather the question of what contribution the state can make to fighting inflation: “For example, expansive government spending and reduce production bottlenecks through a clever supply policy,” said the finance department.
More: Inflation – What can be learned from the margins of large corporations