Frankfurt am Main – IG Metall is calling on policymakers to quickly and significantly lower energy prices and is presenting concrete proposals to that end. “Instead of engaging in heated debates about wage-price spirals, we need concrete action: Lower energy prices!” demands Jörg Hofmann, Chairman of IG Metall.
The rapid rise in energy prices has become an enormous burden for households, extending deep into the middle class, IG Metall notes. The reasons for this price trend are complex—partly a result of fluctuating energy demand during the pandemic, and partly a consequence of the uncertain situation in Ukraine. The priority now is to significantly lower energy prices without jeopardizing the overarching climate policy goals of energy policy. The federal government must therefore act quickly and decisively to implement the following measures:
- 1. Abolish the EEG surcharge:
As already agreed upon in the coalition agreement, the EEG surcharge should now be swiftly assumed by the government. This measure will effectively ease the burden on both households and businesses.
- 2. Minimize the electricity tax:
The electricity tax should be reduced to the minimum of 0.05 cents per kilowatt-hour stipulated by European law. Like the refinancing of the EEG surcharge, this measure would also promote sector coupling and provide relief to households.
The price of natural gas plays a prominent role in energy price trends. Of all energy sources, natural gas has seen the sharpest price increase—even compared to pre-pandemic levels. If the price spikes on the primary market were passed on in full to consumers, this could quickly result in additional monthly costs of 100 euros for an average family. The federal government should therefore cap the gas price for a household’s average basic needs. A temporary reduction in the value-added tax rate on electricity, heating oil, gas, and fuels would also be conceivable, provided that it can be ensured that this reduction is passed on to consumers.
- 4. Bring forward the increase in the basic tax exemption:
The increase in the basic allowance by 240 euros to 9,984 euros in 2022 was already decided in 2020—that is, before the current price trend began. The upcoming further increase in the basic allowance should be brought forward. Even before the surge in energy prices, the DGB had called for a basic allowance of 12,800 euros.
IG Metall aims to safeguard purchasing power in the upcoming collective bargaining rounds and will therefore continue to closely monitor the inflation rate. “It is also up to policymakers to determine what distributional conflicts we will face in 2022,” notes Jörg Hofmann.
Further information and press photos of Jörg Hofmann
