Gas price brake, insolvency moratorium - SPD presents proposals for the third relief package

In view of the sharp rise in energy prices, the SPD wants to put up a comprehensive protective shield for citizens and for those municipal energy suppliers for whom the price increases for gas, electricity and oil mean unacceptable hardship. In a draft resolution by the SPD parliamentary group, which will be discussed on Thursday and Friday this week and is available to WELT, it says: "To relieve the burden in the coming winter months, we are committed to socially just direct payments for middle and lower incomes, for pensioners and ALG-I -Recipients (unemployment benefit, ed.), students and trainees.”

The parliamentary group also wants to support the local energy suppliers - usually the municipal utilities - so that they are still able to supply the respective households with energy in view of the burdens caused by the price increases and the gas levy. The SPD is proposing a so-called insolvency moratorium for this purpose, as has already been used in a similar form as a reaction to the consequences of the corona pandemic.

Specifically, the Social Democrats want “targeted direct payments to low and middle income earners”. Needy pensioners and students should also benefit from this. The money should flow immediately and directly. The template says: "For the payment, we expect a proposal from the Federal Ministry of Finance linked to the tax ID and income as soon as possible."

Chancellor Olaf Scholz (SPD) admitted at a public discussion on Thursday in Magdeburg that aid through tax reductions would take effect late, would be difficult for the citizens to understand and would therefore not be a tried and tested means of relieving the burden on people. Regarding the current plans from the SPD, the Greens faction said that one could well imagine renewed direct payments to the households, they could even be higher than the 300 euros in energy money that have already been decided. Up to 500 euros per household are conceivable.

Meanwhile, the SPD is also pushing for a so-called gas price brake. After that, the citizens would pay a large part of their costs according to the tariff of the previous year, we are talking about 70 percent. Everything that is consumed beyond that would then have to be paid for according to the current, significantly higher prices. There should also be a so-called hardship fund. It is intended to “protect households from being overwhelmed if they are unable to reduce their consumption to a basic requirement”, for example because other people have joined the household.

The Social Democrats also want to strengthen tenant protection in view of the price avalanche: “Nobody should lose their apartment because they cannot pay the additional costs. Therefore, we want to rule out terminations of tenancies due to non-payment of additional operating costs for the billing periods 2021 and 2022 for six months from the billing of the costs. Electricity and gas cuts should also be excluded. The SPD wants to significantly increase the number of housing benefit recipients.”

The 9-euro ticket should also be reissued in a similar form. A nationwide ticket for regional transport is planned at a price of 49 euros, which could be valid from January 1st. However, the federal and state governments do not agree on the issue. SPD and Greens in the federal government and representatives of the federal cabinet expect that the federal states will contribute half of the costs. The federal states have so far rejected this.

The plans have a good chance of being implemented: the SPD has the Greens on its side on most points. However, the situation is different with the FDP, which insists on budgetary discipline more than the other two traffic light partners. FDP leader and Federal Minister of Finance Christian Linder is relying heavily on reducing the so-called cold progression to cushion inflation. Lindner thinks little of measures such as discounted public transport tickets, but he would not block himself. Transport Minister Volker Wissing (FDP) supports the reduced ticket.

Nevertheless, the SPD is optimistic that a third relief package will be passed this week. "Even if there are different opinions about the role of the welfare state and its importance in overcoming crises in the progressive coalition of SPD, Greens and FDP, this coalition wants and will create progress and cohesion together," says the template for the parliamentary group retreat.

However, the question of how another relief package, which will almost certainly be worth billions again, is to be financed is a source of conflict. The Greens say that federal and state revenues are more than solid, so another package for households and companies could be financed. In addition, the debt brake will not apply in 2022, which should only come into effect again in 2023. "If so, then we'll put together another relief package now, because we have the leeway for it," says the Greens parliamentary group. The FDP, on the other hand, is much more reserved.

This is especially true when it comes to the further financing plans of the SPD and the Greens. Because, among other things, they want to attract companies that are currently earning well. The costs of the crisis should be distributed fairly, the paper says: "A suitable instrument for this is a targeted excess profit tax for those energy companies that are benefiting massively from this crisis." The FDP has so far strictly rejected this.

The Social Democrats shoot another arrow in the direction of the Greens, because according to the will of the parliamentary group, the gas surcharge issued by Economics Minister Robert Habeck (Greens) should be significantly corrected with a view to companies: “We expect companies to make billions in profits and not through are threatened with insolvency because they do not submit applications. In addition, it must be ensured by law that such applications are unsuccessful, ”demands the parliamentary group. It must also be regulated that companies submit applications, do not pay dividends and pay bonuses.

The SPD and FDP come together on Thursday and Friday for their parliamentary group retreats. The relief package is to be discussed there. It is unclear when there will be an agreement and a third package will be announced. Dirk Wiese, deputy leader of the SPD, had told WELT AM SONNTAG that the third package should be decided this week. According to the will of representatives of the federal government, central points should already be announced at the closed meeting of the federal cabinet on Tuesday and Wednesday in Meseberg near Berlin.

This has met with criticism from the ranks of the parliamentary groups. The SPD and the Greens said in unison: The urge of the federal government to quickly present new relief is understandable, but the decision on budgetary issues lies solely with parliament. Therefore, nothing can and will not be finally decided before the deliberations of the parliamentary groups on Thursday and Friday.