Germany: In view of the rising cost of living, Olaf Scholz announces a new aid package

Chancellor Olaf Scholz at a press conference on August 11, 2022 in Berlin. Chancellor Olaf Scholz during a press conference in Berlin, Germany, August 11, 2022. MICHAEL SOHN / AP

Olaf Scholz is rested and confident in his first comeback. “Times are serious, but we have a good chance of getting out of it, even if it gets complicated,” declared the German Chancellor on Thursday, August 11, at the beginning of a nearly two-hour press conference in which he presented visibly confidently to the often critical questions from journalists.

The chancellor, who has been in office for eight months, was awaited both by international news, which is already causing noticeable tensions in the economy and the social situation in Germany, and by his possible involvement in a political and financial affair from his time as Mayor of Hamburg (2011-2017). He is suspected of having intervened to prevent Bank Warburg, which was convicted in the “CumEx” scandal, from repaying part of the amounts due to the tax authorities. Earlier this month, the announcement of the find of €214,800 in small denominations in the safe of one of his former relatives from the local SPD put the case back on the table.

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Asked about this topic almost a dozen times, the chancellor contented himself with laconic answers. Did he know something? : ” Nothing. “Where does this money come from? ” No idea. He recalled that he would testify on August 19 before the Hamburg investigative committee (“I’m looking forward to it”) and specified that “there were no indications of political interference” for two and a half years. Mr. Scholz had trouble convincing on this issue.

For the rest, he adopted Angela Merkel’s communication codes, convinced that “calm becomes strength”. While some of his ministers expect social tensions at the beginning of the school year due to the rising cost of living, Scholz rules out this scenario because he promises that nobody will be left behind. Specifically targeting “those who have very little,” he announced a new aid package without specifying the size, nature or timing.

“It will not be easy”

“I am confident: the citizens of this country are smart, they know that it will not be easy. But our message is clear: we are preparing and will do everything we can to help individuals and businesses. With the same composure, he asserted that “there will be no shortage of gas”. According to him, the two LNG terminals currently under construction in the north of the country will be ready this winter. He also relies on European solidarity in the energy sector.

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