The federal government is helping the flood victims - and is once again assuming the role of natural hazard insurer in the flood areas.

Finance Minister Olaf Scholz (SPD) and Interior Minister Horst Seehofer (CSU) made this clear after the cabinet decision on the aid package for the people and communities affected by the floods.

Nevertheless, the federal government is considering compulsory insurance.

Manfred Schäfers

Business correspondent in Berlin.

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In that case, the taxpayer would not have to step in again in a future disaster, because those affected did not want or could not insure the risk - and the federal and state governments are morally compelled to help them. The federal government is also considering setting up a permanent crisis fund together with the federal states in order to be prepared for further storm scenarios. According to experts, these are likely to increase in the course of climate change.

The SPD politician warned against punishing people without insurance coverage in the current situation.

“This is a major catastrophe and we have to help.

That has to have the first priority and not any principles, ”said Scholz.

Now you have to help.

“I advocate not being cynical, not being heartless.” The finance minister reacted evasively when asked whether the efforts to obtain insurance cover should not be positively taken into account.

“The question of what exactly is paid and how much has to be determined precisely.” That will be decided quickly and pragmatically with the federal states.

"Incentives are being undermined"

The economist Daniel Osberghaus from ZEW - Leibniz Center for European Economic Research warned against ignoring the long-term consequences of the fast and unbureaucratic help for flood victims. "They undermine the incentives for private provision, such as taking out insurance against natural hazards or structural precautionary measures." They also de facto discriminate against homeowners who would have taken out insurance. Hence, they could be perceived as unjust. He spoke out in favor of strengthening the insurance market for natural hazards and referred to neighboring countries that either have insurance obligations or disaster funds with capped payout amounts.

According to the German insurance industry, almost all residential buildings in this country are protected against storms and hail.

However, only 46 percent of homeowners have protection against other natural hazards such as heavy rain and floods.

According to the association, the damage after the flood disaster in North Rhine-Westphalia and Rhineland-Palatinate runs into the billions.

"We are currently expecting insured losses of 4 to 5 billion euros," reported General Manager Jörg Asmussen.

"Some cannot insure themselves"

According to the SPD candidate for Chancellor, the federal government wants to clarify with the states what consequences are to be drawn from the current catastrophe. The insurance question is not that easy. So Scholz raised the question of whether there should be different tariffs. If you then build in an area with a flood risk, you would have to accept a more expensive policy.

Today, from the point of view of those potentially affected, things are not that easy. "Some can not take out insurance, even if they want to," said Seehofer. "If you live directly on the Danube, you will not find anyone who will guarantee you that." This is a very complex issue, so it is right to discuss it intensively with the countries. FDP chairman Christian Lindner warned that such damaging events would occur more frequently as a result of climate change. He asked Bild Live: "We have to talk about climate liability, because such events are increasing."

The cabinet decided on Wednesday an emergency aid of 200 million euros, it is expected that the countries provide an equally large amount. The emergency aid in North Rhine-Westphalia should not look any different than in Rhineland-Palatinate. The structural assistance should not be regulated differently either. Everything will be based on earlier approaches. Maybe we will see that we can do a point or two better. If more should be necessary, the federal government is ready to increase its amount for emergency aid, said Scholz. Sufficient funds are available in the budget.

Seehofer quoted an early statement by the SPD politician: "Aid will not fail because of the money." Aid for reconstruction should run for years and require billions. Scholz and Seehofer did not want to commit themselves to one amount, they only recalled the flood from 2013, when in the end 6 billion euros were needed for this purpose.