The Bavarian state government wants to curb high inflation with a legislative initiative in the German Federal Council and mitigate its consequences. “We need to curb inflation and adjust inflation,” Prime Minister Markus Söder said Tuesday after a cabinet meeting in Munich.
Inflation is the “greatest challenge to citizens” – it leads to creeping expropriation. “No one cares,” Soder said, calling on the European Central Bank (ECB) to step in. “The European Central Bank should act at five percent at the latest. A calculated exit plan from the zero interest rate policy is needed.”
The Frankfurt Central Bank is politically independent and not bound by instructions. It has set itself a 2% inflation target.
Soder announced the Federal Council initiative on inflation. The lump-sum savings amount should be doubled, housing allowances increased and compensation for the high heating and electricity costs created in order to mitigate the consequences for citizens. The SPD is betting on a rise in inflation – this has been the case since the time of Chancellor Helmut Schmidt (1974 to 1982), said the head of the CSU. The CDU, together with its sister party CDU, is fighting against the victory of the Social Democratic Party, for which German Finance Minister Olaf Schulz is running for chancellor, in the federal election campaign. Bavaria is governed by a coalition of the Christian Social Union and the Free Voters.
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