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Even Germany, the engine of the European economy, has not escaped the price crisis.
High inflation has forced German Chancellor Olaf Scholz to admit that rising prices are worrying many citizens in the country, and urged them to support and support each other.
According to the latest data, prices in June rose by 7.6% compared to a year ago, and Scholz promised to organize a meeting of experts to tackle the cost of living crisis. At the meeting are trade unions, employers, representatives of the Central Bank (Bundesbank) and academics. The campaign, dubbed “Concerted Action,” is reminiscent of similar efforts by former West German chancellors in the 1960s and 1970s, local media say.
Economists and politicians have thrown some ideas in recent days to ease the burden of costs on citizens. The Minister of Labor, Hubertus Heil, came up with the proposal to pay an annual allowance to singles who earn less than 4,000 euros gross per month and for married couples who earn less than 8,000 euros together. But experts from the German Institute for Economic Research argue that such a measure offers only temporary relief.
“Only higher wages and social benefits can sustainably compensate for the damage to middle- and low-income citizens,” institute president Fratzscher told the DPA news agency. The social-democratic politician, Saskia Esken, called for an increase in benefits and social support in line with the increase in inflation, and a significant and permanent increase in wages, especially low wages. The economic expert of the CDU party, Julia Klöckner, on the other hand, called for the permanent reduction of taxes, including those on energy
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