The former Verdi boss Frank Bsirske, who has been a member of the Bundestag for the Greens since last year, is bringing a price cap for basic needs into play to curb the galloping gas prices.

The Green social expert sees further need for action for the wallets of low and normal earners, even after two relief packages from the coalition.

A third relief package could become necessary.

It could then make sense to think about capping the price of gas for basic needs.

Additional burdens for a family due to the gas price increase in extreme cases of 2000 euros per year is "not manageable for many".

According to Bsirske, a price cap would have to be paid for by state subsidies.

The Institute for Macroeconomics and Business Cycle Research of the trade union-affiliated Hans Böckler Foundation had already made a corresponding proposal.

Bsirske sees "a strong incentive effect to limit the amount of gas to the basic requirement".

The government's relief packages to date include, for example, the abolition of the EEG levy on the electricity bill, reduced energy taxes and a 9-euro monthly ticket for local transport.

The Bundestag is also discussing a new version of the Energy Security Act today in its first reading.

Lindner wants to relieve the income tax

In view of the high inflation, Federal Finance Minister Christian Lindner (FDP) wants to relieve employees in the coming year by making income tax adjustments.

The state should not "enrich itself with salary increases that only compensate for the price increase," Lindner told the "Bild" newspaper on Friday.

He therefore wanted to “make a fair proposal” in the fall to combat so-called “cold progression”.

Cold progression refers to the phenomenon that people earn a nominally higher salary when inflation persists, but can still buy less from it.

One reason for this is progressive taxation: the application of a higher tax rate means that employees have to pay a higher percentage of their gross salary in tax.

High inflation can then lead to real wage losses.

In the Ukraine war, inflation in the euro zone remains at a record high: the rate of inflation in the countries of the monetary union is expected to reach 7.5 percent in April, as the EU statistics authority Eurostat announced on Friday based on a flash estimate in Luxembourg.

For Germany, the Federal Statistical Office reported record inflation of 7.4 percent for April on Thursday.

The main reason for this is the price of natural gas and mineral oil products, which has risen noticeably in Ukraine since the beginning of the war.

But groceries also became more expensive.

Employers warn of spiraling wages and prices

Employer President Rainer Dulger has meanwhile called on the unions to restrain wage demands.

"We need moderate collective agreements," said the BDA boss of the "Augsburger Allgemeine".

In this way, the unions could help to curb inflation.

“Our joint responsibility is to prevent a wage-price spiral.

This is only possible with a responsible collective bargaining policy.” The conclusion in the chemical industry and the decision of the collective bargaining partners not to resume collective bargaining until October 2022 is a role model for other sectors.

"In view of the changed situation, we have to expect a loss of prosperity," said the employer boss.

“Too many crises are coming together at the moment: in addition to the war in Ukraine, the Corona crisis is still having an impact.

Ports are being closed in China, so there is a lack of products here.” Switching from fossil fuels to renewable energies is also expensive.

"So the good years are over for now, we all have to be aware of that," emphasized Dulger.