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Relief Package: 65 Billion “Not Enough Relief for Average Households”

IG Metall welcomes the federal government’s third relief package as effective for low-income earners. However, average households are not receiving enough relief. The electricity price cap is an important step, but it must be supplemented by a gas price cap. Overall, too much remains vague.

Familie beim Einkaufen im Supermarkt

5 September 2022 5 September 2022


65 billion euros: The federal government’s third relief package is more than twice as large as the first two packages from the spring combined. IG Metall welcomes the new package. We have repeatedly called for further relief measures in Berlin. The “traffic light” coalition has now implemented this, at least in part. The third relief package is a step in the right direction—but from IG Metall’s perspective, it stops halfway:

Positive: The package provides effective relief for people with low incomes. The aid now approved for retirees and students was long overdue.

However: The package provides only insufficient relief for average households.

Overall, much of the package remains too vague. For example, relief for working people with long commutes.

The electricity price cap is an important step, but it must be supplemented by a gas price cap. Here, the traffic-light coalition refers to a concept that has yet to be developed. The coalition also falls short when it comes to capturing “windfall profits” in the electricity market alone.

Still, the option for employers to pay their employees an additional 3,000 euros tax-free—for example, through a wage increase—could provide significant relief.
 

Politicians Implement IG Metall’s Demands—Partially

IG Metall had advocated for further relief early on and launched a nationwide petition campaign to that end. More than 200,000 workers signed the petition, calling for a socially just third relief package that would focus in particular on retirees, students, and the unemployed. A cap on gas and electricity prices and a tax on windfall profits were also among IG Metall’s demands, which are now set to be implemented—at least in part.

“The relief package sets an important course for both citizens and businesses. Nevertheless, it leaves many questions unanswered,” says Jörg Hofmann, President of IG Metall. “While effective relief measures have been agreed upon for households with very low incomes, the immediate relief for average households is insufficient. Improvements are needed here.”

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