Economy Minister Robert Hambeck (Greens) was also in favor of imposing a tax on profits.
Chancellor Olaf Solz today re-assured citizens that the government will continue to support everyone in need in the face of the new energy price hikes announced today, with the “gas levy” at 2.419 cents/kWh.
“Prices will rise. There is no other choice. Energy prices continue to rise. But with 39 billion euros we are already relieving the citizens. And we are also preparing a new relief package. We will not leave anyone alone to bear the highest cost,” Mr. Soltz said in a tweet.
Today’s decision, with the supply companies passing on the high supply costs to their customers, is estimated to cost a family of four €576/year and is already causing backlash. The leader of the Social Democratic Party (SPD) Lars Klingbeil asked the chancellor for “quick decisions” to relieve citizens and advocated the introduction of a tax on surplus profits, the exemption of natural gas surcharges from VAT and the “further development” of the single ticket of 9 euros/month for public transport. “The money must remain with the consumers and not end up in the state,” he said characteristically.
Economy Minister Robert Hambeck (Greens) was also in favor of imposing a tax on profits. “You know I think it’s right,” Mr Habeck said, but recalled that the Liberals (FDP) oppose such a measure.
Referring to the “natural gas levy”, the Minister of Economy spoke of “the fairest of the possible options”, however he emphasized that the additional charge “must not exceed the limit”. He also explained that the exemption of the levy from the VAT requires relevant approval from the European Union, for which, as he said, the government is working.
The trade unions are also asking for more help for low incomes. Ver.di expressed concern about the “risk of existential hardship” for many households, with its chief Frank Wernecke calling for consumer prices to be frozen at the level of 2021. From the Equality Welfare Association, Ulrich Schneider said that “no there is a need for a relief package, but for a large support package for the poorest”.
Also according to the calculations of the German Economic Institute, the levy will cost industrial companies around 5.7 billion euros, with a particular burden on chemical and metal companies.
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