One in four people in Germany now has to spend more than ten percent of their net household income on energy. Last year there were even fewer households (14.5%). This price explosion is “social explosives,” German Chancellor Olaf Scholz (SPD) said on Sunday. He is very concerned.
“If heating costs suddenly rise by a few hundred euros, that is an amount that many can not really get by (…)”, said the chancellor in the ARD “summer interview”. In it, he pointed out that his government had already spent 30 billion euros to relieve the citizens. From Monday, talks are planned with unions and employers on how to tackle inflation. “We have to move on now.” According to Scholz, the talks should be less about concrete measures and more about a process “in which it is clear that everyone in Germany will join forces again”.
risk of energy poverty
According to calculations by a research institute, one in four people had to spend more than ten percent of their net household income on energy in May. This is the limit above which people run the risk of energy poverty. “The risk of energy poverty has increased enormously,” says economist Ralph Henger of the IW institute, which is close to employers. Low earners, the unemployed, retirees and single parents are particularly affected. In addition, there are other difficult transition phases. Costs that are taken into account are, for example, those for heating, cooking and electricity.
People at risk of fuel poverty often have wages that are less than 60 percent of the average income in the country. At the same time, they are at risk of poverty. The border in Germany is EUR 1074 net per month for a single-person household and EUR 2256 for a household with two adults and two children between 14 and 18 years old. “But the difference between the income groups is smaller than suggested in the public debate,” Henger said. The middle class can also be affected by energy poverty.
According to German Economy Minister Robert Habeck (Greens), if Russia stops supplying gas through the Nord Stream 1 Baltic Sea pipeline in the future, prices for some municipal utilities could rise even further. He warned about that on Saturday evening.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
