Berlin (Reuters) – SPD General Secretary Kevin Khnert warns of “social explosives” in society in view of rising inflation.
The government, trade unions and employers must therefore conclude a pact on how to deal with the rising prices, said Khnert on Monday in Berlin after the meeting of the SPD presidium. SPD leader Saskia Esken encouraged the unions to strive for high wage increases. FDP General Secretary Bjan Djir-Sarai, on the other hand, advocated that the government should abolish the so-called cold progression in wage and income tax. Government spokesman Steffen Hebestreit dampened the expectation of quick results from the so-called concerted action. Chancellor Olaf Scholz received representatives of trade unions and employers in the Chancellery to discuss how to react to inflation. Results should be available in the fall.
Inflation will remain permanent, Esken said on Deutschlandfunk with a view to the meeting in the Chancellery. “That’s why we have to increase incomes.” Already in 2021, despite rising inflation, there were average wage increases of only two percent. “Now small and medium-sized incomes have to increase,” she emphasized. Esken said that ideas for one-off payments did not come from the Chancellery or the SPD, “especially not in combination with wage restraint”. The opposite is now necessary. Government spokesman Hebestreit emphasized with regard to the debate about one-off payments that it would be wrong to want to set targets for the collective bargaining partners.
“It is obvious that further relief is needed,” said Green co-boss Omid Nouripour, referring to the high energy prices. However, the state cannot absorb everything on its own. “The schedule, as described by the Chancellor, is the right one.” Because the relief that has been decided so far for citizens and companies has only had a partial effect. The FDP general secretary, on the other hand, put the brakes on further state aid: “For this year there will be no space or any financial possibility to adopt further relief packages.”
Esken again expressed doubts that the return to compliance with the debt brake decided by the cabinet would be possible in 2023. Khnert emphasized that the traffic light coalition wanted to stick to the debt brake for as long as possible.
(Report by Andreas Rinke, Alexander Ratz and Christian Krmer; edited by Ralf Bode. If you have any questions, please contact our editorial team at [email protected])