Frankfurt (AFP)
The German government coalition has been negotiating since Tuesday a new plan of several tens of billions of euros to revive the economy, but must overcome its differences on several points, including a purchase premium to support the automobile.
At a meeting which started at 12h00 GMT and will continue on Wednesday, the conservatives of Angela Merkel will plead to lower taxes and support businesses, while their social democratic partners should demand financial aid for families and municipalities .
"The meeting will end at the end of the evening and continue on Wednesday afternoon," tweeted Hero Warrings, spokesman for the CDU party.
In total, some 80 billion euros should be released, according to the German press. They will be added to the huge plan of more than 1,000 billion euros set up in March, at the height of the pandemic, providing aid to businesses and billions of euros in guaranteed loans.
The most disputed point remains a possible subsidy of new cars, to support the industrial flagship of the country: how high? Should it be limited to electric vehicles?
- Jobs or climate -
It would not be the first time that Germany wants to help its economy via the automobile, on which 800,000 jobs depend: during the 2009 crisis, it quickly implemented a premium.
But since then, the German automobile, undermined by the rigged engine scandal and criticized for its late shift to electric, has lost influence in the face of the growing weight of environmental and climatic concerns.
On Monday, some 2,000 protesters according to the organizers formed a long human chain between the chancellery and the headquarters of the federation of German manufacturers, the powerful VDA car lobby. The climate defense organization Fridays for Future also called for around sixty rallies in the country.
"We are asking for an economic recovery plan which strengthens the society of tomorrow," tweeted Luisa Neubauer, German leader of the young movement.
"If the government ignores this clear sign of the people, it shows that it acts only in the interest of large groups and the auto lobby," said the group "Sand im Getriebe", which organized last September the blockade of the motor show in Frankfurt.
However, those responsible for the regions where manufacturers are most present are constantly asking for these bonuses, all the more so since the presentation of a French program of 8 billion euros, also aimed at supporting the transition to "green" mobility. .
"It is not possible that France spends eight billion euros" and Germany "nothing" for the car, "the heart of our economy", denounced in an interview with the newspaper + Welt + Markus Söder, head of the Bavarian government, where BMW and many parts suppliers have their seats.
- Check for families? -
Leader of the Conservative Group in Parliament Ralph Brinkhaus said he was skeptical while the Social Democratic party SPD, a member of the ruling coalition, mainly opposes subsidies for essential petrol or diesel cars by the sector.
According to the VDA, even recent cars with thermal engines will lower emissions and the share of electric is not large enough for stimulation to be effective, argues its president, Hildegard Müller.
The Ifo economic institute notes that scrapping premiums do not generally lead to additional sales: purchases are simply made earlier than expected. And the money put into a new car quickly lacks in the other branches, creating a negative "unintended side effect".
Among the other measures envisaged, the conservatives remain reluctant to direct aid of 300 euros for families offered by the SPD; they prefer lower taxes for businesses and more investment in digital and innovation.
Social Democratic Minister of Finance Olaf Scholz, for his part, put back on the table his plan - before the pandemic - to support the municipalities by transferring a large part of their debt to the federal state.
Only one measure is unanimous for the time being: lower taxes for individuals, one option being to anticipate the already planned abolition of the "soli", ie the surcharge introduced to pay the cost of reunification in 1990 .
© 2020 AFP