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Federal government sticks to twelve percent increase in citizens' income despite criticism

The German government is sticking to the planned twelve percent increase in citizens' income at the turn of the year - despite criticism from within its own coalition. The increase has already been approved by the cabinet and parliament and is therefore "applicable law", said a spokesperson for...

Social department store in Berlin.aussiedlerbote.de
Social department store in Berlin.aussiedlerbote.de

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".

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Source: www.stern.de

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