Rehlinger Demands Fuel Price Cap And VAT Cut Before Finance Summit

Rehlinger Demands Fuel Price Cap And VAT Cut Before Finance Summit

Ahead of a meeting with business associations and trade unions involving Finance Minister Lars Klingbeil (SPD), Saarländische Ministerpräsidentin Anke Rehlinger (SPD) has advocated for state price caps on gasoline and a reduction in the value-added tax. Speaking to “Redaktionsnetzwerk Deutschland” (Friday edition), the Minister-President, who also serves as a deputy leader of the SPD, stated that the federal government must “introduce concrete further measures” in light of the price increases seen at gas stations and in supermarkets.

Rehlinger argued that Germany should institute state price ceilings for fuel, similar to Luxembourg. Furthermore, she proposed levying a windfall tax to recoup “immoral crisis profits” from corporations, thereby funding relief measures for the population. She also suggested making groceries more affordable through a targeted reduction in the VAT. She added that since Economics Minister Katherina Reiche (CDU) has shown no willingness so far to take further action, it was beneficial that Klingbeil had now invited employers and trade unions.

Separately, Mecklenburg-Vorpommerns Minister-President Manuela Schwesig (SPD) demanded that the federal government take swifter action due to the economic repercussions of the Iran crises. Telling newspapers, Schwesig asserted that “the entire government must switch into crisis mode”. She emphasized the necessity of maintaining regular consultations involving the state’s energy, interior ministers, and chairpersons of the federal states, noting that an energy price summit is scheduled for Friday.