The rescue package has a volume of no less than 65 billion euros. But nobody says who should pay for it.

Olaf Scholz, Christian Lindner and Saskia Esken at the press conference

With a package worth billions, the traffic light wants to relieve the burden in view of high energy prices.

(Photo: IMAGO/Christian Spicker)

“Who’s going to pay for that? Who has so much money?” The carnival song of the same name, first sung by Jupp Schmitz in 1949, inevitably comes to mind when you hear the third relief package from the SPD, Greens and FDP. After the “Bazooka” in the corona crisis and the song and football slogan “You’ll never walk alone” by the Federal Chancellor, the latest message is now: powerful and powerful.

The bundle of measures has a volume of more than 65 billion euros. Once again, politicians act as saviors with the citizens’ hard-earned money.

At the same time, people sense when the rescuer state is getting out of hand. As much as help is urgently needed for many people. Despite the financial aid initiated under Olaf Scholz, the SPD no longer gets past the 17 percent mark in the polls. Despite the chancellor bonus. Their very own clientele, the hard-working workers who transfer more than half their income to the welfare state, apparently feel that the state is disinhibiting them.

The coalition still owes solutions for financing the aid. Instead of concrete measures, the paper on the new rescue package only contains hopeful values ​​such as the excess profit tax.

Top jobs of the day

Find the best jobs now and
be notified by email.

Incidentally, there was never a lack of solidarity among the citizens during the Ukraine crisis or the refugee crisis. “Germany stands together”, the title that Scholz came up with for his package, would not have been needed.

The state can only cushion hardship

But the broad middle class in particular is demanding a plan on how all this is to be paid for. It is no longer about repaying the government debt of 2.4 trillion euros. Our children and grandchildren have to deal with this.

Today one looks with dismay at the trophies of the SPD, Greens and FDP, which they carry home after each aid package for their own clientele. Why does it take 22 hours of negotiations?

The difference to the past is that the economy is no longer booming. The treasury is emptying simply because interest rates are rising. One percent higher interest rates mean an additional burden for the state of 14 billion euros annually. Higher taxes are generally prohibited, but especially so in times of economic crisis. It’s just not how the chancellor wants to persuade people that there is money for everyone.

Scholz’s pledge not to leave anyone behind is as resilient as earlier promises by Chancellor Angela Merkel and her finance minister to pay for all savings.

>> Read also: Scholz and party leaders present 65 billion euro relief package

It was important psychologically, but nothing more. The state can absorb hardship, but it must not overtax the social market economy.

It is therefore economic nonsense when income groups who could afford it themselves benefit from nine-euro tickets, fuel discounts, child benefit increases or electricity price relief.

Of course, they also take the financial benefits with them. However, the burden of national debt will also hit them. No matter how many times the coalition can claim that the rescue packages have been well thought out. Without counter-financing, one essential question remains unanswered.

The debt brake as an illusion?

The promise by Finance Minister Christian Lindner (FDP) that he wants to comply with the debt brake in the coming year sounds nice. But can he keep it up? Economics Minister Robert Habeck (Greens) will soon have to explain to his party why the extended operation of the nuclear power plants is unavoidable after the gas supplies stopped by Nord Stream 1. The FDP chairman faces the same fate in financial policy.

The only question then is when the bill will be presented. The classics such as inheritance tax, wealth tax and a higher top tax rate should then be back on the agenda. But a solution looks different.

More: Read the full text of the federal government’s package of measures here

source site-13