In view of planned government demands for more climate protection, the federal government expects a drastic increase in its subsidies. According to media reports, these will reach a record 31.4 billion euros next year.
According to a report in the "bild" newspaper (saturday), this is the result of the new subsidy report by finance minister olaf scholz (SPD), which the cabinet will decide on next wednesday. Previously, the "handelsblatt" newspaper had reported that. A spokesman for the ministry would not comment on the reports.
According to the reports, the volume of federal subsidies and tax breaks will rise from 21.8 billion euros in 2017 to 31.4 billion euros in 2020. The federal government’s subsidy policy is increasingly being shaped by climate and environmental policy. Another reason for the increase is the demand for billions of euros for broadband expansion. All in all, the subsidies are divided into 93 different financial aids – such as the child construction subsidy and the coal demand – and 105 tax breaks, for example for shift allowances or hotel accommodation.
In october, the federal cabinet approved a draft law on a new CO2 price. Aim is to make climate-damaging heating and fuels more expensive. The state takes in billions through emissions trading. In return, the federal government is planning to ease the burden – for example, through a higher commuter allowance.
FDP caucus vice-chairman christian durr criticized: "many subsidies are demonstrably ineffective and cost a lot of money. It would be fairer to eliminate pointless subsidies such as e-car subsidies, child construction subsidies and coal subsidies and instead give all burgers more of their money."
Grunen budget politician sven-christian kindler said: "climate-aggressive subsidies continue to be demanded by the federal government with billions in tax money." This is economically and ecologically incendiary. "Instead of continuing to subsidize plastic turkeys, the agricultural industry, dirty diesel and the airline industry with billions of taxpayer dollars, the federal government must finally eliminate these subsidies and use the money to invest in climate protection."