Climate money: Financial experts doubt the feasibility and effectiveness of the political promise

Climate money: Financial experts doubt the feasibility and effectiveness of the political promise

According to a report from www.focus.de, the 2021 coalition agreement states that the increased CO2 prices should be compensated for through a social compensation mechanism beyond the abolition of the EEG levy. The planned climate money is intended to relieve the burden on people with low incomes when energy prices put excessive strain on their household budgets. However, there are now concerns that the government is unable to implement climate money as promised. Lower Saxony's Prime Minister Stephan Weil from the SPD has criticized the fact that there are currently no financing options, and Economics and Climate Minister Robert Habeck from the Greens claims that the state will return the additional income from the CO2 price, even though this cannot be achieved financially.

According to an analysis, the implementation of climate money is difficult due to financing problems and a lack of administrative capacity. This uncertainty could lead to a loss of trust in politics and leave citizens with disappointing expectations regarding social compensation for higher energy costs. This could affect consumer confidence and potentially lead to reduced purchasing power. In addition, the state's inability to distribute climate money as promised could damage the political credibility of the governing parties.

In Austria and Switzerland, a climate bonus or climate money is already being paid out automatically, while in Germany there are still financial bottlenecks and administrative problems. This could lead to dissatisfaction among citizens and affect the political legitimacy of the governing parties. It is important that the government finds possible solutions to these problems so as not to jeopardize the public's trust.