Steady steering

By June, inflation showed signs of rising again, mainly in food items. However, German citizens in general, and Vietnamese people residing here in particular, have learned to manage their spending wisely during this period of price uncertainty, working together with the government to overcome the difficulties.

Ms. Nga, who lives in the state of Hessen, said that her husband works as a laborer, earning about 1,800 euros per month. She works part-time at a restaurant, earning 1,200 euros, and with the government's support of 500 euros for her two children, the family's total income is 3,500 euros per month.

When prices were normal, her family lived comfortably, with a little extra for travel and emergencies. But for almost a year now, everything has skyrocketed in price, and everything they earn is spent immediately.

She had to be tactful, reminding everyone to use the heater and electricity sparingly, diligently hunting for bargains, and waiting to go to the market towards the end of the day when supermarkets offered significant discounts on fruits and vegetables…

Fruits and vegetables are discounted in the afternoon at a supermarket in Germany.

Choosing a different but equally proactive and optimistic approach is the case of Toan, the owner of a small restaurant in Berlin.

He confided that his business had been thriving, and he had a comfortable life, but his restaurant's sales slowed down significantly due to the COVID-19 pandemic. Just as he was gradually recovering from the pandemic, he was hit by inflation, with raw material prices skyrocketing. He was forced to raise prices, which led to a noticeable decrease in customers, especially during the hot summer months when Germans prefer gathering in the garden for beer and barbecues rather than eating out. His revenue barely covered his expenses.

Mr. Toan then decided to… close his business for three weeks and take his whole family back to Vietnam for a vacation. "The weather will be cooler in the autumn, I'm sure we'll be able to sell again," he expressed his confidence in the government's handling of the situation.

It was the policies that helped stabilize people's lives that brought prestige to the German government.

In response to fuel shortages, the government has planned to spend billions of dollars building five liquefied natural gas (LNG) import terminals via sea routes, while simultaneously increasing imports and expanding renewable energy plants from wind, solar, and hydropower, and reopening nuclear power plants…

Faced with rising inflation, the government has launched various support packages including tax breaks, subsidies, and practical additional measures such as energy price caps, helping to alleviate pressure on households and businesses. From January 2023 to April 2024, the maximum gas price was 12 cents/kWh, while the electricity price cap was 40 cents/kWh for 80% of electricity consumption (based on last year's consumption).

Following the success of the 9 euro/month public transport fare program launched in summer 2022, this year the government is introducing a 49 euro/month fare to encourage people to use public transport and save fuel.

In addition, the government also approved a voluntary support package agreed upon by employers to stabilize inflation, up to 3,000 euros for employees (IAP); financial support for vocational students and university students; increased child support; increased income tax exemption threshold; reduced fuel tax, etc.

According to estimates, around 16% of the German population living below the poverty line are facing the most difficulties. The government has partnered with supermarkets to set up over 1,000 points of sale and distribution of affordable food.

Source: https://nld.com.vn/thoi-su-quoc-te/vung-tay-cheo-lai-20230710212511591.htm