German economist calls fuel rebate plan a bad mistake

A member of Germany's Council of Economic Experts has said the government's decision to introduce a fuel rebate is a cynical way to try to solve a problem with a short-term solution that will lead to frustration among younger voters, the Kölner Stadt-Anzeiger newspaper reported on Sunday.

Veronika Grimm, whose panel advises the government, said "opportunistic politics" was being used to try not to alienate voters "but in the end it only leads to many voters turning away from the established parties in frustration because they are simply not doing their job."

She said the plan would subsidize cars with internal combustion engines at the expense of the younger generation. 

"In this case, that affects both those who reject the climate impact of this measure and the entrepreneurs who can only shake their heads at this short-sighted guiding principle for action," Grimm added.

Because politics focused on the short term, it had "no strength for the really important structural reforms," she added. "This is likely to mean a greater loss of prosperity for citizens than temporarily higher fuel prices."

The agreement between the federal and state governments on a relief package to counter high fuel prices had previously drawn criticism from consumer advocates, social associations and the opposition in parliament.

The renewed fuel rebate was not targeted and, like the planned fuel price cap, would only help for a short time, they said.