Status: 08/11/2022 1:05 p.m
In view of rising energy and food prices, Chancellor Scholz has announced another relief package. He does not fear social unrest. He called Finance Minister Lindner’s tax plans “very helpful”.
Chancellor Olaf Scholz wants to continue to support citizens in the current energy and inflation crisis. “There will be another package,” he said at the federal press conference and also referred to the help that had already been decided. Both recipients of support services and people with low or middle incomes are supported, said the Chancellor. “We will do everything to get them through this difficult time.”
The packages would have a total volume of around 30 billion euros. He also referred to measures that are already known or have been decided, such as the higher minimum wage, improvements in housing benefits or the citizens’ benefit planned for next year as a replacement for the Hartz IV system. The aim is that “no one is faced with unsolvable problems”.
Praise for Lindner
It is clear that “we have to put together an overall package that includes all population groups,” said Scholz. This will also include tax relief. Apparently he was referring to the proposals of FDP leader Christian Lindner, which had caused a lot of criticism from experts but also within the government. “The Minister of Finance presented his contribution to the necessary considerations yesterday. I find that very, very helpful,” said Scholz. It is a “good serve”.
Chancellor Scholz speaks of serious times and major challenges
Tagesschau 2:00 p.m., August 11, 2022
The Chancellor sees no need for a supplementary budget this year. “We assume that we can manage our ideas within the financial framework that is available to us,” he said. “Now we should focus on developing the concrete proposals and I’m sure we can fund them.” Scholz also emphasized that the federal government wants to comply with the debt brake again next year.
On the question of a possible excess profit tax, he referred to the negative attitude of the FDP. An excess profit tax, like a higher income tax for top earners, is not in the coalition agreement and is also technically very challenging.
No social unrest expected
The Chancellor does not expect social tensions in Germany to escalate due to the difficult economic situation and rising prices. “I don’t think there will be unrest in this country in the form outlined – because Germany is a welfare state,” he said.
According to him, the two planned liquefied natural gas terminals on the German North Sea coast should be ready this winter. The first terminals would be “connected early next year this winter”. It has been planned for the past few years. “That’s why it’s going to be quick now.” It is currently expensive to procure gas. “But we will always get enough.”
Scholz said he saw progress in negotiations on a price cap for Russian oil. Such a price cap only works if it is organized globally. There are intensive discussions about this, which have not yet ended.
Nadine Bader, ARD Berlin, about Chancellor Scholz’s press conference
midday magazine 1:00 p.m., August 11, 2022
The Chancellor also stated that he was in favor of a pipeline from Portugal via Spain and France to Central Europe. He spoke to his colleagues in these countries as well as to EU representatives about the project and strongly advocated that it be realised.
Further support for Ukraine announced
Scholz also announced further massive support for Ukraine. Russia’s war continues to demand “that we make far-reaching decisions to support Ukraine in its struggle for independence.” The government is doing this through a “massive break with previous practice by supplying very, very many, very far-reaching, very efficient weapons. And we will continue to do so in the near future.” Scholz was initially not specific when it came to the question of future arms deliveries.
He called the war the current greatest challenge. Russia must realize “that it cannot end in a dictated peace, as the Russian President and his political leaders probably initially had in mind.” Scholz emphasized: “It mustn’t work and it won’t work either, I’m quite sure of that.”
“The Russian President bears the responsibility”
The Chancellor also denounced Russian war crimes. He noted many of these acts “with great horror”. “This is a criminal war, there is no doubt about it.” He was convinced that all measures would be taken to solve these crimes. “The Russian President bears responsibility for this war.” He did not answer the question of whether Putin would therefore have to answer personally.
With a view to the Russian aspirations for power, Scholz emphasized that he had no illusions. He deliberately described the “turning point” that followed the Russian war of aggression against Ukraine as such. “It’s a change in the reality we live in.”
He does not expect ex-Chancellor Gerhard Schröder to play a role in the Ukraine war. “I don’t know,” he said when asked if Schröder could be of any help. When the turbine was used for the Nord Stream pipeline, he could have taken action. However, the serviced turbine is still not requested by the Russian side or imported into the country.
Scholz: No political influence at Warburg Bank
In the cum-ex tax affair surrounding the Hamburg Warburg Bank, Scholz again rejected any responsibility. “There is no evidence that there was any political influence,” he said, referring to the extensive investigations of the past two and a half years. “I am sure that this realization will not be changed.”
When asked what he knew about the money in the safe deposit box of former SPD member of the Bundestag Johannes Kahrs, Scholz said: “Nothing.” He has no idea where the funds could come from, but would like to know. According to reports from several media, more than 200,000 euros were found in the locker. Investigators made the find as part of a search related to the Cum-Ex financial scandal.
Track progress “even faster”.
Scholz also emphasized that the federal government is sticking to its claim of a “progressive coalition”. Although these are three different parties, they have “clearly agreed” to intensively promote the modernization of Germany. Despite the current crises, Germany’s aim is to remain “a leading industrial country with technologies that can be exported worldwide in 10, 20 and 30 years’ time”. The crisis even makes it necessary to pursue this goal “with more speed”. “Because I think it’s now very clear to everyone that we have to become independent of importing coal, oil and gas.”
The chancellor also declared that, despite differences, he expected the government alliance to remain in place in the long term. The coalition will hold out for the four years of the current legislative period, he said. “I even have a perspective that goes beyond that, as I’ve said on several occasions.”
When asked if he missed his predecessor Angela Merkel (CDU), Scholz said: “I like to talk to her on the phone, but I also like being chancellor.”
The Chancellor faces the federal press conference – Olafs Scholz and his premiere at the summer press conference
8/11/2022 1:48 p.m