Steady steering

By June, inflation had increased again, mainly in food and foodstuffs. However, Germans in general and Vietnamese people living here in particular have learned how to spend wisely during times of unstable prices to help the government overcome difficulties.

Ms. Nga, who lives in the state of Hessen, said her husband works as a factory worker, earning about 1,800 euros/month. She works as a waitress at a restaurant and earns 1,200 euros, plus the 500 euros the state supports for her two children, for a total family income of 3,500 euros/month.

When prices were normal, her family lived comfortably, with a little extra for travel and contingencies. But for nearly a year now, everything has skyrocketed in price, and her family has run out of money as soon as they make it.

She had to be tactful, reminding everyone to use the heater and electricity moderately, to be diligent in hunting for discounted items, and to wait to go to the market at the end of the day when supermarkets have big discounts on fruits and vegetables...

Fruit and vegetables on sale in the afternoon at a supermarket in Germany.

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

He confided that from a place with good business and plenty of food, his restaurant's sales slowed down due to the COVID-19 pandemic. While gradually recovering from the pandemic, he was immediately hit by inflation, and the price of input materials increased dramatically. He was forced to increase his selling prices, and the number of customers decreased significantly, especially in the hot summer when Germans prefer to gather in the garden to drink beer and grill meat rather than eat out. The restaurant's revenue is just enough to cover expenses.

Mr. Toan immediately decided to close the shop for 3 weeks and bring his whole family back to Vietnam to visit. "When the weather is cool in the fall, we will definitely be able to sell again" - he expressed his belief in the government's direction.

It is the policies that help stabilize people's lives that have brought prestige to the German government.

To cope with the fuel shortage, the government has planned to spend billions of dollars to build five liquefied natural gas import terminals by sea, while increasing imports and expanding renewable energy plants from wind, solar, hydropower, and reopening nuclear power plants.

Faced with rising inflation, the government has launched a series of tax and subsidy support packages, along with practical additional measures, such as capping energy prices, to help ease the pressure on households and businesses. From January 2023 to April 2024, the maximum gas price will be 12 cents/kWh, while the electricity price will be capped at 40 cents/kWh for 80% of electricity consumption (based on last year's consumption).

Following the success of the 9 euro/month transport fare program from the summer of 2022, this year the government launched 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 by business owners to stabilize inflation, up to 3,000 euros for employees (IAP); financial support for vocational students and students, increased child support; increased income tax exemption threshold; reduced fuel tax, etc.

According to calculations, about 16% of the German population living below the poverty line have the most difficulty. The government has joined with supermarkets to organize more than 1,000 points of sale and distribution of cheap food.

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