This inflation There are no breaks in Germany. Prices of industrial production goods increased by 33.5% in April compared to the same month of the previous year. This is the biggest increase since the start of the record. II. World War In 1949, as confirmed this Friday by the Federal Statistical Office (Destatis). In Germany, inflation increased for the seventeenth consecutive month (7.4%) in April. And given the development of energy prices and the overall consequences of the war in Ukraine, many analysts warn that this upward trend is far from over.
In this context, the German Government – trio of social democrats, greens and liberals – Proposes a package of measures aimed at helping Parliament families and freelancers to reach the end of the month. According to the federal finance minister, liberal Christian Lindnerpackage of tax measures and benefits about 22,000 millionshould soften the “inflation feeling” among citizens of a country that already feared a historical price increase due to the hyperinflationary events of the Weimar Republic during the interwar period of the last century.
The measure package – includes: reduced tax pressure well suited to liberal economic policy – should reduce the risk of stagflation in Germany; that is, a combination of price increases, recession, and unemployment growth.
Taxes and deductions
The package of measures envisages a cost for the State greater than: 22 billion € By 2026 and includes the following measures: 363 euro increase in tax-free income – income tax will start to be paid only from the first 10,347 euro entered per year –; Increase in the number of deductible expenses for workers, such as gasoline costs for self-employed or employees who have to travel 21 kilometers or more by car to get from home to work; Low-income minors will receive an immediate allowance of 20 euros per month, which social helps already available; Those who receive unemployment income will receive 100 Euros at a time, and those who are long-term unemployed will receive 200 Euros once. These latest grants, described as insufficient by social organizations, are due next July.
Other additional measures are the abolition of the special tax on energy prices. 3.72 euro cents for every kilowatt hour consumed – implemented over the last two decades and this should help finance the transition of the energy model to renewable sources and introduce a ticket for just 9 euros per month available to all citizens from local resources from next June 1 to August 31 public transport (metro, tram, trains) ). This last measure aims to reduce the use of private transport and hence fossil fuel consumption. Currently in Germany it is almost impossible to find a gas station with a liter of gasoline for less than two euros.
record debt
The package will have a direct effect Public debt Germany: The federal government plans to settle more than 138,000 million debt contracts this year; This would make it the second-largest public debt in the history of the Federal Republic after recorded in 2021 to face the economic consequences of the pandemic.
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In the current extraordinary context created by the war in Ukraine, pragmatism is being imposed on the budgetary and fiscal discipline historically defended by the liberals of the FDP, who now control the Federal Ministry of Finance. As a result, the FDP – constitutionally based in Germany, but now removed – insists on the idea of releasing the brake on the debt next year.
Source: Informacion
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