German Economy Minister Katherina Reiche proposed increasing tax breaks for commuters. The politician representing the CDU emphasized that support should be directed primarily to those areas where the burden is greatest.
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In her opinion, special attention should be paid to people using cars for daily commutes and to the logistics sector, which is strongly affected by the increase in fuel costs.
Opposition to the windfall tax and the sharp reaction of the social democrats
Reiche clearly rejected the SPD coalition's proposal to introduce a tax on windfall profits in the energy sector. According to the minister, such a step could be inconsistent with the German constitution.
She described the social democrats' idea as “expensive and ineffective”pointing out that it would not bring real relief to citizens.
SPD representatives quickly responded to the minister's words. The deputy head of the parliamentary group, Esra Limbacher, criticized Reiche, accusing her of lack of competence and inappropriate approach to her function.
The politician assessed that the minister represents the interests of oil companies rather than citizens and small businesseswhich suffer the most from the effects of rising fuel prices.
The coalition is looking for a common solution
Chancellor Friedrich Merz previously informed about the ongoing talks in the government. As he noted, the coalition is analyzing various possibilities to limit the negative effects of increasing fuel prices on the economy and society.
For now, the government has decided to introduce one important solution – from April, gas stations can raise prices only once a day, at noon. Violation of these rules may result in fines of up to PLN 100,000. euro.
After the ceasefire between the US and Iran was announced, fuel prices in Germany began to decline slightly. The average price of E10 petrol is currently around EUR 2.17 per liter, while diesel is EUR 2.40.
