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Should Germany do more to support households with rising energy costs?

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With the cold months ahead, many households in Germany are worried about how they can afford to heat their homes. 

Now the Association of Towns and Municipalities has urged the government to put in place higher heating cost subsidies for low-income households. 

“We are seeing an explosion in energy prices, especially for gas,” association managing director Gerd Landsberg told Bild.

“It’s clear that energy should not only be something for the rich. Therefore, the next federal government is called upon to support financially weak families and to mitigate the explosion in heating costs.”

At the same time, Landsberg warned of higher costs for local governments. 

The strong increase in gas prices will “hit many municipalities hard – through higher energy costs for buildings and higher heating cost subsidies for Hartz IV (unemployment benefit II) recipients”, he added. 

READ ALSO: How households in Germany can tackle rising energy costs

According to Landberg, municipalities expect a deficit of between €8-8.5 billion this year. Next year it could be similarly high.

“If the rise in energy and gas prices continues unchecked, there is a threat of a dramatic social imbalance,” Klaus Müller, head of the Federal Association of Consumer Organisations, told the Tagesspiegel.

Verena Bentele, president of the social association VdK, spoke out in favour of annually adjusting the housing allowance for people with low incomes in order to help people manage the rising energy costs.

In view of the immense price increases for energy, the state must create social compensation for those on low incomes, she said.  

It can’t be the case that almost half of all households in major German cities have to spend more than 30 percent of net income on rent, and for a quarter – at least 40 percent, Bentele told the newspaper.

“Politics must finally create framework conditions so that housing, electricity, heat, and also healthy food are affordable for everyone in the country,” she said.

Why are energy bills going up?

Gas prices on the European markets have reached a record high in the past weeks. It’s down to a number of factors including demand soaring again ahead of winter and after the Covid shutdowns. Limited supply is also contributing to the price increases.

READ ALSO: Why households in Germany are facing higher energy bills

Consumers in Germany, are already feeling it. Gas prices in particular have risen sharply, but electricity prices for households have also climbed to record levels.

The CEO of the energy company RWE, Markus Krebber, expects further price increases.

“I expect electricity and gas to become more expensive in the next few years. It is not yet possible to say how strong the increase will be. Nobody expected the current explosion in stock exchange prices,” he told the Rheinische Post at the weekend.

READ ALSO: Why German electricity bills are hitting record highs 

Households with low incomes have to spend proportionately significantly more of their cash on energy than households with medium or high incomes. 

This is why some EU countries have already initiated measures to protect consumers. France has announced a tariff brake for electricity and gas, and plans to give poorer households €100 each towards the bills.

Italy plans to spend three billion euros to relieve households of part of their electricity and gas bills, for example through tax cuts.

Spain has called for measures at the EU level, such as a common platform for gas purchases.

Luxembourg blames speculation in the gas market for the price increase and proposed a revision of the EU directive. “We have to stop the extremely speculative behaviour of some traders,” said Luxembourg’s Energy Minister Claude Turme.

Rising energy prices also have other undesirable side effects: inflation has been rising sharply for months. In September, it rose above the four-percent mark for the first time in Germany in almost 28 years.

According to the Federal Statistical Office, goods and services in Germany cost an average of 4.1 per cent more than a year earlier. As a result, the spike in energy prices can lead to other products also becoming more expensive.



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Census 2022 – what difference does it make?

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Next Sunday, April 3rd, is Census night. Millions of people in homes countrywide will fill in page after page of questions, some of which are deeply personal and many of which might be unfamiliar.

But what it is it all about?

At a basic level, Census 2022 will be used to inform planning of public policy and services in the years ahead, according to the Central Statistics Office.

The questions will cover a range of environmental, employment and lifestyle issues, including the use of renewable energy sources in homes.

The questions will help inform policy development in the areas of energy and climate action, and the prevalence of internet access, to understand the availability of and need for internet connections and range of devices used to access the internet.

Questions also focus on changes in work patterns and will include the trend of working from home and childcare issues, while questions are also asked about the times individuals usually leave work, education or childcare, to help identify and plan for transport pattern needs locally and nationally.

Other topics covered include volunteering and the type of organisations volunteers choose to support, tobacco usage and the prevalence of smoke alarms in the home.

And of course there is a time capsule – the chance to write something which will be sealed for the next 100 years.

In this episode of In The News, the head of census administration Eileen Murphy and statistician Kevin Cunningham about what it all means for us.

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Oscars 2022: Will Smith makes Oscar history after slapping Chris Rock over joke about wife Jada Pinkett Smith | Culture

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Will Smith took the Oscar for Best Actor at last night’s 94th Academy Awards, but he also became the protagonist of the ceremony for other reasons. The night was following the script, until Smith slapped comedian Chris Rock on the stage after the latter made a joke about the shaved head of the former’s wife, Jada Pinkett Smith. Rock had quipped that he was “looking forward to GI Jane 2,” in reference to her look. Pinkett Smith has revealed publicly that she has alopecia. It looked as if the moment had been planned, until Smith went back to his seat and shouted: “Get my wife’s name out of your fucking mouth.”

The moment, which immediately became Oscar history but for all the wrong reasons, left the attendees with frozen smiles, and asking themselves whether it was possible that a veteran such as Smith could have lost his cool in front of tens of millions of people. After taking the prize for Best Actor, the superstar actor made a tearful apology, saying that he hoped the Academy “will invite me back.” Later on, actor Anthony Hopkins called for “peace and love,” but it was already too late. The incident overshadowed the success of CODA, which took the Oscar for Best Picture. Just like the time when Warren Beatty mistakenly named La La Land as the big winner of the night, no one will speak about anything else from last night’s awards.

At first sight, Smith’s actions looked as if they were scripted. When he first heard Rock’s joke, he laughed. But his wife was seen on camera rolling her eyes, and it was then that the actor got up onto the stage and hit Rock. When he returned to his seat he raised his voice twice to shout “Get my wife’s name out of your fucking mouth,” sending a wave of unease and shock through the attending audience. The fact that he used the f-word, which is prohibited on US television, set alarm bells ringing that this was real and not a planned moment. In fact, the curse word was censored by the broadcaster, ABC, in the United States.

During a break, Smith’s PR manager approached him to speak. In the press room, which the actor skipped after collecting his prize, instructions were given to the journalists not to ask questions about the incident, Luis Pablo Beauregard reports. The next presenter, Sean “Diddy” Combs, tried to calm the situation. “Will and Chris, we’re going to solve this – but right now we’re moving on with love,” the rapper said.

When Smith took to the stage to collect his Best Actor award for his role as Richard Williams – the father of tennis stars Venus and Serena – in King Richard, he referred to the character as “a fierce defender of his family.” He continued: “I’m being called on in my life to love people and to protect people and to be a river to my people. I know to do what we do you’ve got to be able to take abuse, and have people talk crazy about you and have people disrespecting you and you’ve got to smile and pretend it’s OK.”

He explained that fellow actor Denzel Washington, who also spoke to Smith during a break, had told him: “At your highest moment, be careful, that’s when the devil comes for you.”

“I want to be a vessel for love,” Smith continued. “I want to be an ambassador of that kind of love and care and concern. I want to apologize to the Academy and all my fellow nominees. […] I look like the crazy father just like they said about Richard Williams, but love will make you do crazy things,” he said. He then joked about his mother, who had not wanted to come to the ceremony because she had a date with her crochet group.

The Los Angeles Police Department released a statement last night saying that Chris Rock would not be filing any charges for assault against Smith. “LAPD investigative entities are aware of an incident between two individuals during the Academy Awards program,” the statement read. “The incident involved one individual slapping another. The individual involved has declined to file a police report. If the involved party desires a police report at a later date, LAPD will be available to complete an investigative report.”

On December 28, Pinkett Smith spoke on social media about her problems with alopecia. She stated that she would be keeping her head shaved and would be dealing with the condition with humor. “Me and this alopecia are going to be friends… Period!” she wrote on Instagram.



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House-price inflation set to stay double digit for much of 2022

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House-price inflation is expected to remain at double-digit levels for much of 2022 as the mismatch between what is for sale and what buyers want continues.

Two new reports on the housing market paint a picture of a sector under strain due to a lack of supply and increased demand driven by Covid-related factors such as remote working.

The two quarterly reports, one each from rival property websites myhome.ie and daft.ie, suggest asking prices accelerated again in the first quarter of 2022 as the stock of homes available for sale slumped to a new record low.

Myhome, which is owned by The Irish Times, said annual asking-price inflation was now running at 12.3 per cent.

Price

This put the median or typical asking price for a home nationally at €295,000, and at €385,000 in Dublin.

MyHome said the number of available properties for sale on its website fell to a record low of 11,200 in March, down from a pre-pandemic level of 19,000. The squeeze on supply, it said, was most acute outside Dublin, with the number of properties listed for sale down almost 50 per cent compared with pre-pandemic levels.

It said impaired supply and robust demand meant double-digit inflation is likely until at least mid-2022.

“Housing market conditions have continued to tighten,” said author of the myhome report, Davy chief economist Conall Mac Coille.

“The broad picture of the market in early 2022 remains similar to last year: impaired supply coupled with robust demand due to Ireland’s strong labour market,” he said.

Soure: MyHome.ie

“One chink of light is that new instructions to sell of 7,500 in the first 11 weeks of 2022 are well up from 4,800 in 2021, albeit still below the 9,250 in 2019. The flow of new properties therefore remains impaired,” said Mr Mac Coille.

“Whatever new supply is emerging is being met by more than ample demand. Hence, transaction volumes in January and February were up 13 per cent on the year but pushed the market into ever tighter territory,” he said.

He said Davy was now predicting property-price inflation to average 7 per cent this year, up from a previous forecast of 4.5 per cent, buoyed strong employment growth.

Homes

Daft, meanwhile, said house asking prices indicated the average listed price nationwide in the first quarter of 2022 was €299,093, up 8.4 per cent on the same period in 2021 and and just 19 per cent below the Celtic Tiger peak, while noting increases remain smaller in urban areas, compared to rural.

Just 10,000 homes were listed for sale on its website as of March 1st, an all-time low. In Dublin, Cork and Galway cities, prices in the first quarter of 2022 were roughly 4 per cent higher on average than a year previously, while in Limerick and Waterford cities the increases were 7.6 per cent and 9.3 per cent respectively.

The report’s author, Trinity College Dublin economist Ronan Lyons, said: “Inflation in housing prices remains stubbornly high – with Covid-19 disturbing an equilibrium of sorts that had emerged, with prices largely stable in 2019 but increasing since.

“As has been the case consistently over the last decade, increasing prices – initially in Dublin and then elsewhere – reflect a combination of strong demand and very weak supply.”


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