The heads of government of the federal states started their talks on Wednesday afternoon about the further course in the energy crisis and possible relief. In the afternoon, they will discuss this with Chancellor Olaf Scholz (SPD). Before the talks, several country heads had expressed optimism about the implementation and financing of the crisis relief measures.
The federal government has indicated that it is accommodating to the federal states before renewed talks about the financing of relief measures. As can be seen from a draft resolution for the conference of the heads of government of the federal and state governments, the federal government is offering more money for local public transport and for the reception and integration of refugees. The talks are likely to focus on the federal government’s plans to depress the recent enormous rise in gas and electricity prices for citizens.
FDP parliamentary group leader Christoph Meyer emphasized: “We expect the prime ministers to finally give up their resistance to their share of the financing of the third relief package.” The federal states are tactical and, despite high tax revenues, are evading their responsibility – while citizens and companies are in urgent need of relief. “Any additional demand for funds from the federal states or municipalities is incomprehensible in the state’s income situation,” said Meyer of the German Press Agency.
The Hessian Prime Minister Boris Rhein (CDU) meanwhile sees the Berlin traffic light government as having an obligation. “The federal government has to move on Wednesday so that there can be an agreement,” he told the editorial network Germany (RND).
Nationwide ticket for bus and train?
Citizens should be particularly interested in whether the federal and state governments can finally agree on a nationwide local transport ticket. Actually, there is already agreement that there should be a 49-euro ticket. But the federal states make permanently higher subsidies from the federal government a condition. As can be seen from the draft resolution, the federal government now wants to make a new offer to the states. For 2022 he wants to pay additional regionalization funds of one billion euros, from 2023 onwards they are to be increased by three percent annually.
It is questionable whether this is enough for the federal states – they had asked for 1.5 billion euros more from this year. In addition, according to the ideas of the federal states, the federal government should increase the regionalization funds in 2022 and 2023 by 1.65 billion euros each due to the increased energy prices. In any case, Chancellor Scholz was confident. An agreement has almost been reached with the federal states on such a “Germany ticket”, said the SPD politician on Tuesday at a citizens’ dialogue in Gifhorn, Lower Saxony. “Tomorrow is the day when it should finally succeed.”
The German Trade Union Confederation (DGB) calls for a nationwide social ticket for a maximum of 29 euros per month. “The Federal Chancellor and Prime Minister urgently need to agree on how the 49-euro ticket should be financed in the future,” said DGB board member Stefan Körzell. Financing security until 2030 is important: the expansion of local public transport is only feasible with significant investments in new networks, vehicles and personnel.
Gas price brake plans
Shortly before the meeting in the Chancellery, the federal government presented plans for a gas price brake. On the one hand, the state takes over the December discount with a one-off payment. In addition, the gas price for private customers is to be capped from March, if possible retrospectively to February. For 80 percent of the previous year’s consumption, the gas should cost 12 cents per kilowatt hour. If you use more, you have to pay more. Households with higher incomes should tax the state aid as a benefit in kind. The March date is too late for the countries – it is unclear whether it is enough for them that the cheap price could apply retrospectively from February.
Thuringia’s Prime Minister Bodo Ramelow (left) called for the gas price cap to start on January 1st. “Particularly when it comes to capping energy costs, citizens urgently need to be reliable,” he told the Rheinische Post and Bonn’s “General-Anzeiger”. “It is our common task to limit concerns about energy poverty.”
Refugee accommodation costs
The federal government also wants to respond to the demands of the federal states for more support in taking in the many refugees from Ukraine and via the Balkan route. It is now offering federal states and municipalities a total of 4.25 billion euros this year and next to provide for refugees.
Housing benefit financing
It is still disputed how the significant expansion of housing allowances planned by the federal government is to be financed. In January, the state rent subsidy is to increase by an average of 190 euros per month and be paid to an additional 1.4 million citizens. So far, half of the housing allowance has been financed by the federal and state governments, but the states no longer want to participate.
Municipalities demand clarity from the federal and state governments
The German Association of Cities called on the federal and state governments to come up with “viable solutions that do not burden the local authorities, but rather relieve them”. “It’s also about maintaining and strengthening the performance of the cities, especially in times of crisis,” said President Markus Lewe (CDU) to the RND. He again called for more money for taking in refugees and for local transport, as well as a rescue package for public utilities in need.
The general manager of the German Association of Towns and Municipalities, Gerd Landsberg, told the newspapers of the Funke media group: A binding commitment is needed that the federal and state governments would pay the municipalities “the costs for accommodation, supplies, additional daycare and school places and the integration work in full on a permanent basis finance”.
