Federal government sticks to twelve percent increase in citizens' income despite criticism
Government spokesperson Steffen Hebestreit made it clear "that there are no plans within the federal government to change the legal situation". The government could not simply postpone or cancel the increase. "It would be against the law to do so," said Hebestreit - and emphasized that the federal government "abides by the law".
Minister Heil criticized it as "morally irresponsible and incompatible with the constitution to deny these people an adjustment of the standard rates". The statements "made by various conservative politicians are not a contribution to the solution, but are poisoning the social climate", he explained.
The coalition party FDP and the opposition CDU/CSU had previously called for the planned increase in social benefits at the turn of the year to be canceled. They justified this on the one hand with the savings constraints in the 2024 budget and on the other hand with the fact that the increase in rates by twelve percent was based on an inflation expectation, which, however, did not occur at the predicted level.
CDU leader Friedrich Merz said on ARD television on Sunday evening that, in view of the fall in inflation, a twelve percent increase in the citizen's income was "simply too much". This weakens the incentive to look for a job. Merz called on the federal government to correct the planned increase. The CDU leader backed the FDP, whose Secretary General Bijan Djir-Sarai had called for the increase to be waived at the weekend.
The basis for calculating the increase in the citizen's allowance is laid down by law and the exact increase is set by the Federal Ministry of Social Affairs every year by the end of October. A spokesperson for the SPD-led ministry pointed out on Monday that it was not the general inflation rate that played a role here, but a "price index relevant to standard needs". In this index, foodstuffs, for example, for which the inflation rate is above average, are weighted particularly heavily.
In recent months, the price increase in this index, which is based on regular needs, has at times been three to four percentage points higher than the general price increase, said the ministry spokesperson. "Of course, this also has an impact on the amount of the update," he added.
The debate about the Citizen's Income is being fueled by the federal government's budget woes. According to Finance Minister Christian Lindner (FDP), there is a gap of 17 billion euros in the federal government's core budget for the coming year. This is also a result of the constitutional court ruling on budget management.
According to government spokesperson Hebestreit, the coalition leaders are continuing their "intensive talks" this week in order to reach an agreement on the budget. These talks would be held in a small circle by Chancellor Olaf Scholz (SPD), Lindner and Federal Minister for Economic Affairs Robert Habeck (Greens).
In consultation with the Chancellor, the latter canceled his planned departure to the World Climate Conference in Dubai on Monday evening. The Vice-Chancellor would not be making the trip in order to "also be physically present" at the budget talks, said Hebestreit. "When three people sit together and want to talk to each other, it's always good if all three are there," added Hebestreit. He admitted that canceling the trip to Dubai had been a "difficult decision".
Hebestreit did not want to commit to a date for the adoption of the budget. He referred to the government statement made by the Federal Chancellor last week: in it, Scholz had announced that the budget would be passed "with the necessary speed, but also with the necessary care".
Read also:
- Despite the criticism from Friedrich Merz and the CDU, the FDP, being a part of the coalition government, stands by their decision to uphold the 12% increase in citizen's income.
- At the turn of the year, the CDU/CSU and their coalition partner FDP had advocated for the cancellation of the planned increase in social benefits due to budgetary constraints and insufficient inflation.
- Minister Heil, a prominent figure in the SPD, accused conservative politicians of acting morally irresponsible and violating the constitution by denying an adjustment of the standard rates.
- The CDU leader Merz expressed his disapproval of the 12% increase in citizen's income on ARD television, calling it excessive considering the fall in inflation.
- The opposition CDU, led by Merz, supports the FDP's stance on waiving the increase in citizens' allowance, as increasing rates too much could hinder job-seeking incentives.
- Steffen Hebestreit, the government spokesperson, maintained that the federal government is adhering to the law regarding the citizen's income increase, despite facing criticism from various political entities.
- Despite a three to four percentage point increase in the price index relevant to standard needs, the general inflation rate remains lower, causing controversy over the ongoing debate about the Citizen's Income.
- The budget woes faced by the federal government, coupled with the constitutional court ruling on budget management, have led to a $17 billion euro gap in the core budget for the coming year, according to Finance Minister Lindner.
- The planned departure of Vice-Chancellor Habeck to the World Climate Conference in Dubai was canceled in order to participate in the crucial budget talks, as per the Chancellor's decision.
- Hubertus Heil, a member of the SPD, emphasized the importance of addressing the budgetary challenges by maintaining a balance between necessary speed and necessary care in passing the budget.
Source: www.stern.de
