Financial expert analyzes proposal to abolish diesel privileges and suspend the debt brake

Financial expert analyzes proposal to abolish diesel privileges and suspend the debt brake

According to a report by www.golem.de Economist Monika Schnitzer suggests eliminating climate-damaging diesel subsidies in order to close the 17 billion euro gap in the 2024 budget.

According to a study by the Ecological-Social Market Economy Forum, a complete abolition of the diesel privilege could lead to additional income of 8.5 billion euros per year. With an equivalent tax to gasoline, the tax share on diesel would rise from 47 to 76 cents per liter. Accordingly, prices at the pumps would climb by almost 30 cents. In addition to abolishing the diesel privilege, Schnitzer is also in favor of re-examining the suspension of the debt brake in 2024.

The economist Achim Truger also advocates for a further suspension of the debt brake. He argues that the energy crisis is weighing on the economy and that cuts are the wrong approach. In addition, the economy could be jeopardized by savings. In addition to abolishing the diesel privilege, he is bringing a temporary climate solidarity measure for high incomes into play.

The proposed measures could have far-reaching effects on the market and the financial industry. The removal of the diesel privilege would lead to a significant increase in the price of diesel fuel and possibly lead to a decline in consumption and increased demand for alternative drives such as electric cars. This could in turn have an impact on the automotive and energy sectors. The renewed suspension of the debt brake could lead to increased national debt and possibly influence the credit conditions for other market participants.

In the coming days, policymakers will have to make fundamental decisions about the future course of fiscal policy, and their decisions could have a significant impact on the economy.