(de-news.net) – Chancellor Olaf Scholz has proposed a reduction in the VAT rate on food from seven percent to five percent. He articulated on ARD television that this measure would significantly benefit low-income earners without imposing a substantial burden on the federal budget. When queried about extending this reduction to the hospitality sector, Scholz remained non-committal, underscoring the importance of implementing a straightforward measure that would be perceptible in daily expenses.

Scholz also addressed the underlying causes of high inflation in recent years, attributing it to a major war in the vicinity and severe economic repercussions, such as a sudden gas shortage. He acknowledged that while the country has managed these challenges, it continues to grapple with their effects.

During his visit to the Ford plant in Cologne, Scholz expressed his support for employees facing challenging circumstances. In the context of electromobility, he emphasized the necessity for improvements in charging infrastructure and electricity for electric vehicles. Scholz called for European cooperation in promoting electromobility, advocating for a European subsidy to facilitate the transition.