Germany’s Finance Minister Lars Klingbeil is urging swift action from cabinet colleagues to introduce additional relief measures as fuel prices continue to climb. In a letter dated Thursday and seen by AFP, Klingbeil warned that “it is foreseeable that further measures will be needed to curb rising inflation at an early stage.” The letter was addressed to Chancellery Chief Thorsten Frei and Economic Affairs Minister Katharina Reiche.
Klingbeil called for Germany to follow the example of Belgium and Luxembourg by introducing “a flexible price cap for petrol, diesel and oil.” He urged Frei and Reiche to begin preparations immediately to enable the government to “swiftly” bring forward legislation. “It is not acceptable to citizens that our neighbors are taking decisive action against price gouging while Germany has so far left such options unused,” the minister wrote.
The Social Democratic Party (SPD) politician also advocated “the introduction of a windfall tax to skim off excessive crisis profits and use them to finance targeted and rapid relief.” Klingbeil pledged to continue pushing for such a measure at the European Union level. He added that the German government should collectively support efforts to establish an EU-wide regulation that would allow for a legally secure national implementation.
Klingbeil stated that revenue generated from a windfall tax should be used to ease “the high mobility costs for citizens.” He outlined several measures that could be implemented quickly, including expanding commuter allowances, introducing a mobility bonus, or temporarily reducing energy taxes. “We need a quick political decision on how we want to use the funds from the windfall tax,” he emphasized.
“The state must demonstrate its ability to act in times of crisis and commit to protecting its citizens,” Klingbeil said. He stressed that it is the government’s duty to advocate for joint measures at the European level and to do everything possible “to mitigate the consequences of the war as quickly as possible.”
Klingbeil’s stance has received backing from SPD parliamentary secretary Dirk Wiese, who told AFP that Klingbeil was “absolutely right to put pressure on our coalition partner.”
“The time for tangible relief on fuel prices is pressing. Many people who rely on their cars simply no longer know how they are supposed to afford refueling,” Wiese said. He also highlighted the strain on businesses caused by high energy prices, adding: “We need decisive action from everyone in the federal government. Now.”
From breaking news to thought-provoking opinion pieces, our newsletter keeps you informed & engaged.
