The Finance Minister had brought up a tank discount of 30 to 40 cents.
(Photo: IMAGO/Chris Emil Janssen)
The coalition partners are still arguing about what their second billion-dollar relief package should look like. But it is already clear that the main thing is to send a signal to citizens and companies: we will not leave you alone with the energy price shock. Not only did Federal Finance Minister Christian Lindner put it that way, but also leading Social Democrats and Greens.
The consequences of such an approach are already evident: the focus is no longer on who really needs help. Instead, the aim is for the state to support as many people as possible. The problems of such a state fully comprehensive mentality become particularly clear with the tank discount proposed by Lindner.
There is no question that the current energy prices can become an existential burden for both citizens and businesses. In this respect, state intervention is justified. But it doesn’t have to end in aimless activism. Wherever companies that are actually competitive get into trouble, help is needed. Such protection of the economic basis pays off for the state in the long term.
Support is also necessary where citizens are in real need as a result of the price jumps. This is now affecting the middle class in particular. Unlike the recipients of basic security, rising heating costs are not automatically absorbed by the state. And unlike top earners, the middle class cannot easily put up with the price increase.
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Every measure that benefits the broad middle of the population quickly becomes expensive for the state. As such, it must focus its resources on those areas where the need is greatest. A fuel discount would be granted to everyone without exception, regardless of need. Anyone who likes to take a Porsche for a walk at the weekend receives a government subsidy, as do commuters with a Polo who actually have existential problems due to high petrol prices.
>> Read also: “Death blow for many smaller petrol station companies” – Association warns of tank discounts
The tank discount makes it clear that politicians are not only concerned with targeted state intervention where it is necessary. Rather, it wants to create the impression that it can permanently protect citizens and companies from rising energy prices. But that is an illusion. Anyone who is happy about a government rebate at the pump today will have to pay it back tomorrow. The money in the watering can of the traffic light is financed from taxes or from debts, which also have to be reduced again.
Every measure that benefits the broad middle of the population quickly becomes expensive for the state.
(Photo: Frank Hoppmann)
A tank discount of 20 cents alone would cost the tax authorities one billion euros a month. And that will by no means be the only costly measure in the traffic light package. If the FDP enforces its petrol subsidy, the Social Democrats and Greens will also receive relief of a similar magnitude.
The traffic light coalition may be counting on the situation on the energy market calming down again soon. But it also needs to be prepared in case prices stay high or even rise further in the event of an escalation with Russia. This requires a targeted and as effective as possible approach to the necessary relief for citizens and companies.
Chancellor Olaf Scholz and Lindner have stressed that Germany should only impose sanctions on Russia that it can actually enforce. This also applies to the accompanying state aid measures for German citizens and companies.
More on this: “Ludwig Erhard would turn in his grave” – Greens don’t think much of Lindner’s idea of a tank discount