Across Europe, the cost of gasoline and diesel is increasing. The issue is being addressed in a variety of ways by the various states.
 |
Christian Lindner is unconcerned by the wide-ranging criticism of his plan: The FDP leader defended his plan to decrease the price of gasoline with a governmental fuel discount on the sidelines of the meeting of finance ministers in Brussels. Since a result of the Ukraine conflict, Lindner believes he is in good company, as other EU finance ministers are similarly concerned about the impact of increased gas and energy costs on residents and businesses.
"Quick, targeted, and temporary assistance" is what Lindner in Brussels is referring to. With the tank discount, this is achievable. Others, such as a VAT drop, stood little prospect of success, Lindner said after a two-day conference with his European colleagues. French EU Presidency Finance Minister Bruno Le Maire also confirmed this.
It's been likened in France to the oil crisis of 1974. There has been a 15-cent "reduction" in gasoline prices in France, which the government announced over the weekend. On April 1st, a four-month assistance programme will begin. According to Prime Minister Jean Castex, those who fill up with 60 litres or less save nine euros.
Lindner now has intentions that are quite similar to mine. The "set crisis discount," he stated on ZDF Monday night, might be 30 or 40 cents. The EU's tight standards on taxes would not be in contradiction with it, therefore it could be given fast and easily. It's unclear when Germany's minister of finance will implement the "crisis discount" or additional help, however.
Both the EU and the United States refused to make a commitment. In order to defend European industry from climate-damaging imports, the finance ministers authorised a new CO 2 border adjustment. Financial relief for Europe's economy is a long way off, though.
This is due to the fact that the EU Commission is cautious, and the 27 member states have a wide range of views. As France did, Germany may potentially do the same, but Austria is pressing for a cut in gasoline and diesel taxation. A package of measures to save every Belgian home 300 euros annually was approved on Monday, including a reduction in the VAT on gas. The Belgian law also gives a discount of 17.5 cents per litre on gasoline and diesel.
In the absence of a unified EU-wide plan of action, As a result of the Russian invasion of Ukraine and Western sanctions, businesses and residents alike are suffering.
Lindner claims that these "second-round impacts" have an impact on not just petroleum products like gasoline and oil, but also industrial supply chains as a whole. As a result, he is suspicious of an energy embargo, and here is why. One must take into account both Russia's and Germany's repercussions. Determine how long you can go on like this.
Lindner's plan is still up in the air as to whether or not it will become a reality. On Tuesday, the SPD distanced itself from the finance minister's single effort after the Greens had already voiced unambiguous condemnation on Monday. SPD leader Rolf Mützenich stated, "I would have preferred the Federal Minister of Finance to come up with a coordinated plan along with us in the coalition and the government. It is now time for the coalition to come up with a socially responsible programme. According to Mützenich, it must be established if the present gasoline prices are not the result of market manipulation before a potential reduction in pricing can be considered.
Chancellor Olaf Scholz responded warily to Lindner's proposal. Asked his thoughts on the matter, Scholz said that actions were required to reduce the burden on individuals and guarantee "that our economy gets through these tough times effectively.