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In a video podcast Chancellor Olaf Scholz said that the rise in prices is quite worrying. Ministers, unions, the federal bank and academics meet to discuss the situation.
The German Chancellor, Olaf Scholz asked the citizens to face the country’s economic problems together, because inflation in the German economy continues to remain high.
In his weekly video podcast Chancellor Scholz admitted that rising prices are worrying many citizens in Germany and called on citizens to support and support each other.
Olaf Scholz
According to the latest data, prices in June rose by 7.6% compared to a year earlier, and Scholz said he will organize a meeting of experts to tackle the cost of living crisis. The chancellor said that for this meeting he has invited trade unions, employers, representatives of the Central Bank (Bundesbank) and academics.
The campaign, called “Concerted Action,” is reminiscent of similar efforts by former West German chancellors in the 1960s and 1970s.
Permanent salary increase or an annual bonus
Economists and politicians have thrown some ideas in recent days to ease the burden of costs on citizens.
Labor Minister Hubertus Heil floated the idea of paying an annual allowance to singles earning less than 4,000 euros gross per month and to married couples earning less than 8,000 euros together.
Rising prices worry many citizens in Germany
Experts from the German Institute for Economic Research (DIW) said that the one-time payment of an annual allowance provides only temporary relief. “Only higher wages and social benefits can sustainably offset the damage to middle- and low-income citizens,” DIW president Marcel Fratzscher told dpa news agency.
The social-democratic politician, Saskia Esken, asked for an increase in aid and social support in line with the increase in inflation.
In addition, she demanded a significant and permanent increase in wages, especially low wages.
The economic expert of the CDU party, Julia Klöckner, called for the permanent reduction of taxes, among others those on energy.
High inflation in Germany was exacerbated by the Russian invasion of Ukraine. DekaBank chief economist Ulrich Kater told the Reuters news agency that he does not think prices will drop in the near future. Kater said that “by the end of the year, we should expect an increase in inflation up to about 7%”./DW
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