Germany’s federal authorities are considering providing financial assistance to low-income citizens as the country’s cost of living crisis appears “likely” to worsen.
Hubertus Heil, Germany’s minister of labor and member of the left-wing Social Democratic Party, has announced his intention to bail low- and middle-income Germans in hopes of offsetting the ongoing cost of living crisis.
Thanks to the combination of the ongoing war in Ukraine and the wrong political decisions of the past, the European Union member state has been severely affected by rising food and energy prices, a crisis that some experts say must weaken. worst.
According to the report MirrorMinister Heil is seeking payments to those with a total income of less than €4,000 (~$4,293 / £3,999) or less than €8,000 (~$8,585 / £6,799) if married. Average €200 (~$214) / £169 per person per year.
The proposal received mixed reactions, with some from the coalition partners of the Social Democrats in Germany’s three-party government, some of the market-oriented liberal Free Democratic Party, opposed to the idea, while others from the far-left Greens supported it.
But while supporting the idea, Marcel Fratscher, head of the German Institute for Economic Research, warns that it is unlikely to be achieved adequately.
“Special relief is now needed for low-income people, especially in food, to withstand the shock of high inflation,” said Fratzscher, but cautioned that low-income families will definitely need between 100 and 150 euros a month. ”“. Compared to around 200 Euros per year.
Labor Light: Conservative government imposes unexpected 25% tax on oil and gas companies amid cost crisis https://t.co/bL4DEmvL3x
– Breitbart London (@BreitbartLondon) 26 May 2022
As federal officials in Germany grapple with how best to rein in inflationary pressure on the country’s most vulnerable, experts warn things could get worse in the coming months.
According to the report WorldExperts point out that while food prices for consumers have increased by about 6 percent, food manufacturers have increased their prices for retailers by more than 16 percent, and the increase in the costs retailers face will likely be felt. buyers in the coming months.
“History has shown that retail prices generally match producer prices, albeit with some delay,” said Aurelien Duthoit of Allianz Trade, emphasizing that “the worst is coming for households.”
High inflation and post-pandemic decline in grocery food sales are putting pressure on the profitability of grocery retail. . “.
One way to alleviate the current crisis could be to put an end to the ongoing global food crisis, where Russian forces are allegedly blocking grain and vegetable oil exports from Ukraine and, in part, Western sanctions.
However, the prospect of resolving this crisis any time soon seems unlikely, as President Vladimir Putin allegedly reiterated on Saturday an official statement that Moscow would only allow exports to resume after the West lifts its sanctions on Russia.
“Vladimir Putin explained the real reasons for the food supply shortages as a result of the wrong economic and financial policies of the Western countries, and the anti-Russian sanctions they imposed, with arguments and based on certain data. “The Kremlin’s statement on the details of Putin’s phone call with two Western leaders: French President Emmanuel Macron and German Chancellor Olaf Scholz.
“For its part, Russia is ready to help find options for unhindered grain exports, including the export of Ukrainian grain from Black Sea ports,” the Kremlin said.
Increasing the supply of Russia’s fertilizers and agricultural products will also help reduce tensions in the global food market, which will certainly require the lifting of sanctions related to sanctions.”
Farmers in Sweden may have to cut their crops in half due to the lack of fertilizers and fertilizers from Russia. https://t.co/BSL50MjSC3
– Breitbart News (@BreitbartNews) March 18, 2022
Source: Breitbart
