“There will be another package” – Scholz wants to bring further relief on the way

Berlin Olaf Scholz (SPD) enters the hall of the federal press conference and takes a quick step to his place on the podium. The chancellor seems to be in a hurry for his first summer press conference. After his mini vacation in the Allgäu, he feels well rested, he says.

But when he returns, the work piles up on his desk. War in Ukraine, energy crisis, inflation, corona. Scholz has to take care of everything at the same time. Then he is also the focus of the cum-ex scandal surrounding the Hamburg Warburg Bank.

His opening statement to the journalists in the capital is short. From the beginning he gives the caretaker. “You’ll never walk alone” is his message. Politicians and citizens would join hands.

Scholz announces further relief for citizens in view of the high inflation. Nobody is left alone, Scholz repeats several times. “The government is determined to do that.” The coalition of SPD, Greens and FDP will do everything to ensure that the citizens get through this difficult time, he assures.

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As with his predecessor Angela Merkel, everything is controlled – at Scholz not only on this day. At least Merkel occasionally answered spontaneously and wittily. It doesn’t seem the right time for the Chancellor to do this, the situation in the country is too serious for that.

Scholz: “I don’t think there will be unrest”

There will be no social unrest in Germany

Despite the very high energy prices, he does not believe in social unrest in Germany. The welfare state will prevent that. He is concerned with those “who have very little”. Therefore, the government will do something with the housing benefit and introduce the citizen benefit.

A reform of the housing benefit and the introduction of the citizen benefit, which is to replace Hartz IV, are planned for the coming year. Both measures benefit low-income earners.

He finds the proposal by Federal Finance Minister Christian Lindner (FDP) to reduce the cold progression very helpful. The relief package for taxpayers in the amount of 10.1 billion euros is a “good premium” from Lindner. According to the Chancellor, an overall package will include further tax relief and announces an addition that includes all sections of the population.

The financial experts understand cold progression as creeping tax increases, when a salary increase is eaten up by inflation, but the employee still has to pay more taxes. Lindner therefore wants to ensure a balance.

>> Read here: Lindner’s tax plans are met with criticism from coalition partners – “It ignores reality”

The press conference will take place under Corona conditions. Many chairs in the hall remain free, only 87 journalists were admitted with a mask requirement. Everyone else can follow Scholz’s answers in the live stream.

Scholz is not concerned about the Cum-Ex affair

It is Scholz’s first summer press conference as chancellor. But he is familiar with the format from his posts as First Mayor of Hamburg and Federal Minister and knows what questions he will have.

He has therefore prepared an explanation in various variants for the events of the tax affair involving the Hamburg Warburg Bank. In the so-called “Cum-Ex” scandal, financial players moved blocks of shares around the dividend date in a complicated system in such a way that they were reimbursed for taxes they had never paid.

Johannes Kahrs

Investigation files are said to show that more than 200,000 euros in cash were found in a safe deposit box belonging to SPD politician Kahrs.

(Photo: imago images/Metodi Popow)

No one in the hall takes it from him. But he is looking forward to his appearance on Friday next week in front of the Parliamentary Committee of Inquiry of the Hamburg Parliament, says Scholz. The committee should also clarify its role as Hamburg’s head of government in the affair.

After meetings in 2016 and 2017 with the bank shareholders Christian Olearius and Max Warburg in Scholz’s office, the tax authorities had allowed a tax reclaim of 47 million euros against the bank to expire. A further 43 million were only claimed after the Federal Ministry of Finance intervened shortly before the statute of limitations expired.

“Nothing.” Chancellor Olaf Scholz when asked what he knew about the more than 200,000 euros in party friend Johannes Kahrs’ locker

The meetings are said to have been initiated by the then member of the Bundestag Johannes Kahrs. Investigation files are said to show that more than 200,000 euros in cash were found in a safe deposit box belonging to SPD politician Kahrs. When asked what he knew about the money, Scholz answered briefly: “Nothing”.

Regarding the possible origin of the money, he says: “I have no idea – I assume you know that better than I do.” However, such short answers were interpreted as arrogant and flippant.

bye

47

Million Euros

A tax reclaim against the private bank MM Warburg in this amount has been statute-barred by the Hamburg tax authorities.

That’s why there is a longer explanation for another question. “There is no evidence that there was any political influence.” That would have shown the extensive investigations of the past two and a half years. “I am sure that this realization will not be changed.”

>> Read here: Scholz emails searched Chancellor comes under pressure in Hamburg tax affair

When asked by a journalist when he last met the Kahrs, he replied: “It must have been a long time ago”. When asked if he is currently in contact with Kahrs, he says: “No.”

The longer the war in Ukraine, the more the foreign policy debate shifts towards domestic issues. This also becomes clear in the course of the press conference. Scholz emphasizes that the war can only end with Ukraine’s consent.

Failures in German energy policy

But then everything revolves around the question of how Germany will get through the autumn and winter. Scholz sees major failures in German energy policy in recent years. “We are working off all the omissions of the last few years, which were really big in this regard,” he says.

nuclear power plant

It is being examined whether the three nuclear power plants that are still in operation can run longer.

(Photo: dpa)

When asked if he felt a sense of responsibility as a member of the previous black-red government, he said he was basically open to self-criticism: “It’s definitely something I’m capable of, although there are rumors to the contrary.”

Scholz expects that the gas storage facilities in Germany can continue to be filled. They are already much fuller than last year. In addition, during the energy crisis, consideration is being given to allowing the three nuclear power plants still in operation to run longer. There will be a decision on this “soon”.

According to the Chancellor, the two planned liquefied natural gas (LNG) terminals on the German North Sea coast will be completed this winter. It has been planned for the past few years.

“It’s definitely something I’m capable of, despite rumors to the contrary.” Chancellor Olaf Scholz on self-criticism

“That’s why it will be quick now.” It is currently expensive to procure gas. “But we will always get enough, that’s what it’s all about.” The terminals are considered crucial so that Germany can get by in the winter without gas cuts.

At the end of the press conference things are a bit more relaxed. Asked if he misses Angela Merkel in view of the major crises, he says: “I like to talk to her on the phone, but I also like being chancellor now.”

More: Up to 2000 euros for families – who would benefit from Lindner’s tax proposal

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