DJ WEEKEND-OVERVIEW/economy, politics /2. and July 3, 2022
Here are the most important economic and political news from the weekend:
ENERGIE-BLOG
Economy calls for “protective shield” for gas suppliers
The economist Veronika Grimm has called on the federal government to take action against the background of the escalating gas crisis. “If the Russian deliveries fail for a long time, the suppliers will have to buy the quantities at high prices on the gas market in order to continue to supply their customers,” she told the Handelsblatt. The economist brought a “protective shield for the affected companies” into play, which could be designed through loans as part of aid programs.
Hamburg wants to ration hot water in the event of a gas shortage
The Hamburg Senator for the Environment Jens Kerstan (Greens) has announced that the amount of hot water for private households will be limited in the event of a gas emergency in the Hanseatic city. Kerstan also announced that a possible provisional liquid gas terminal in Hamburg would not be operational until the middle of next year at the earliest.
Warning of turbulence at Stadtwerke
In view of the turbulence at the largest German gas supplier Uniper, the Association of Municipal Companies (VKU) has warned of a chain reaction that could also affect the municipal utilities. It is right that the federal government is ready to act at Uniper, said VKU general manager Ingbert Liebing of the Rheinische Post. “What urgently needs to happen now is an amendment to the Energy Security Act with better instruments to curb the price spiral and maintain security of supply.”
EPP boss calls for special summit on gas supply crisis
The party and parliamentary group leader of the European People’s Party (EPP), Manfred Weber (CSU), is calling for a special summit of the EU heads of state and government to develop a plan for Europe-wide emergency supplies in autumn and winter because of the Russian cutback in gas supplies.
Netzagentur boss warns of pressure drop in the gas network
The President of the Federal Network Agency, Klaus Müller, has warned of the dramatic consequences of an uneven gas supply in Germany. “The moment the pressure in the gas network in a region falls below a certain minimum, the fuse in hundreds of thousands of gas boilers would suddenly kick in,” Müller told the newspapers of the Funke media group. “They would have to be activated again manually by trained specialists if gas were available in the region again.”
Müller (Netzagentur): Consumers will be “shocked” by gas prices
The President of the Federal Network Agency, Klaus Müller, has warned against a dramatic increase in gas prices. “Many consumers will be shocked when they get mail from their energy supplier,” he told the newspapers of the Funke media group. “Through what Putin is giving us with Nord Stream 1, we can triple it. And we can only speculate how things will continue.”
POLITIK-BLOG
IW boss Hüther calls for tax exemptions
Before the concerted action, Michael Hüther, director of the employer-related Institute of German Economics (IW), spoke out in favor of exemption from taxes and contributions. “Wage policy cannot provide the answer to a loss of purchasing power; instead of targeted compensation, the watering can principle would be applied,” Hüther told the newspapers of the Funke media group.
Green party leader Hasselmann for higher basic security
Before the concerted action in the Chancellery, Green Party leader Britta Haßelmann is pushing for targeted relief for low earners. “Even people who have little, with small incomes and small pensions, must have the certainty that the next heating bill will not bring them into financial difficulties,” Haßelmann told the newspapers of the Funke media group. “And where help is particularly urgently needed, we will also have to talk about targeted government relief, such as higher standard rates in basic security.”
CDU-Social Wing wants a tax cut on basic food
Before the crisis meeting of Chancellor Olaf Scholz (SPD) with employers and unions, the CDU social wing called for further relief for citizens. In a resolution paper, the workers’ wing of the Union (CDA) called a temporary reduction in VAT on staple foods, co-payments for Hartz IV recipients and lower prices in local public transport in the long term, as reported by the Funke newspapers.
DGB boss demands third relief package with energy price cap
One day before Chancellor Olaf Scholz (SPD) met with trade unions and employer representatives in the Chancellery, DGB boss Yasmin Fahimi called for a third relief package with an energy price cap for basic electricity and gas requirements and opposed an increase in the CO2 price in 2023 pronounced.
Wirtschaftsweiser calls for further relief before concerted action
Before the crisis meeting of Chancellor Olaf Scholz (SPD) with employers and unions, the business wise man Achim Truger appealed to the discussion partners in the round to meet their own responsibility in the further development of prices. “It makes sense to sit down together in the current situation and in view of the high inflation. All three sides are responsible for the development of inflation,” the economist told the newspapers of the Funke media group.
Traffic light draft for Bundestag reduction next week
The traffic light parties want to agree on an electoral reform in the coming week. This is reported by Bild am Sonntag with reference to faction groups. The draft envisages that from 2025 no more than the planned 598 MPs will sit in Parliament. On Thursday, the electoral law commission should give the green light.
CORONA-BLOG
Municipalities are demanding the resumption of free corona tests
In view of the increasing corona numbers, the Association of Towns and Municipalities is calling for the free citizen tests to be resumed. “By autumn at the latest, when the next big corona wave threatens,” there must be “free tests across the board,” said managing director Gerd Landsberg to the RND newspapers. The German Association of Cities called for a rapid legislative process for a new infection protection law. It would be too late to start in the fall, said General Manager Helmut Dedy. He also stressed the importance of free testing.
Minister of Justice considers it possible again to wear masks from autumn
Federal Minister of Justice Marco Buschmann (FDP) does not rule out that when the new Infection Protection Act (IfSG) comes into force, a far-reaching mask requirement will be reintroduced in Germany. “We will probably present a concept later this month. The mask will certainly play a role there,” said Buschmann Welt on Sunday.
Every second person would like the corona measures to be tightened
In view of the increasing number of infections with the omicron subvariant BA.5, almost every second German citizen is in favor of a rapid tightening of the corona measures. According to a representative survey by the opinion research institute Civey on behalf of the “Augsburger Allgemeine”, 49 percent are calling for the corona rules to be tightened immediately.
UKRAINE-BLOG
Lukashenko accuses Kyiv of launching rocket attacks on Belarus
Amid speculation about Minsk’s growing involvement in the Kyiv-Moscow conflict, Belarusian ruler Alexander Lukashenko has accused Ukraine of launching rocket attacks on his country.
Moscow reports capture of Lysychansk and Luhansk region
According to the Russian army, it has captured the strategically important city of Lyssychansk in eastern Ukraine. This means that the entire Donbass region of Luhansk has been “liberated,” the Defense Ministry said in Moscow.
Moscow accuses Kyiv of rocket fire from a Russian border town
The Moscow government has accused Ukraine of launching rocket attacks on the Russian border town of Belgorod. The Russian missile defense system intercepted “three missiles fired by Ukrainian nationalists at Belgorod,” a Defense Ministry spokesman said.
Scholz will "Konzertierte Aktion" längerfristig etablieren
Chancellor Olaf Scholz (SPD) rejected in the ARD summer interview that he had planned a one-off payment from employers instead of tariff increases. “There is no such proposal,” he said. Scholz emphasized that the traffic light coalition of the SPD, Greens and FDP had already initiated many financial reliefs. Many of the measures in the relief package came into force on July 1 – many citizens had not even heard of them. It is also important to look ahead to the coming year. The “concerted action” by the federal government, trade unions and business associations should be established in the longer term.
US-Klimagesandter sichert nach Urteil Einhaltung von Zielen zu
US climate envoy John Kerry has pledged that the US will achieve its climate goals despite the Supreme Court curtailing the EPA’s powers. “We are determined to achieve our goals,” Kerry told AFP. “We can achieve our goals.”
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DJG/gos
(END) Dow Jones Newswires
July 03, 2022 11:30 AM EST (3:30 PM GMT)
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