Advocates urge the implementation of a fresh child allowance for consumers
In the midst of the ongoing coronavirus crisis, Germany's top consumer advocate, Klaus Müller, is urging for renewed measures to support consumers. Müller, the head of the Federation of German Consumer Organizations (VZBV), is advocating for a renewed credit moratorium for consumer loans, with a three-month payment pause for those struggling due to the pandemic.
Müller believes that a suspension of payments is crucial for consumers to gain time and sort out their finances. However, he criticizes the banks for "gaming the system" during the first credit moratorium, calling for stricter regulations to prevent circumvention.
In addition to a credit moratorium, Müller is also advocating for a significant reduction in energy costs. He argues that lower electricity prices are crucial for replacing fossil fuels with clean energy in home heating, a move that would not only benefit the environment but also consumers' wallets.
Müller is also urging for a renewed child bonus due to the ongoing crisis. He believes that this bonus would provide much-needed support for families struggling to make ends meet. However, as of late July 2025, there is no specific or recent update in the public economic reports or government summaries concerning new or ongoing proposals specifically labeled as a child bonus, energy cost reduction, credit moratorium, or VAT reduction targeted at consumers in Germany.
Müller is also critical of the temporary VAT reduction, stating that it didn't provide enough relief for consumers. In some sectors like gastronomy, furniture retail, or online retail, companies pocketed the money from the VAT reduction instead of providing relief, according to Müller.
The German economy is showing signs of recovery with improving economic sentiment indexes and growth forecasts for 2025 and 2026, per institutes like ifo, ZEW, and OECD. However, the government focus appears to have shifted toward broader stimulus packages for infrastructure and defense and longer-term growth rather than emergency pandemic consumer relief. Unemployment remains relatively steady, and forecasts expect a slow but positive growth trajectory, rather than newly introduced direct relief payments or tax reductions tied to COVID-19 impacts.
As the coronavirus crisis continues to impact consumers, Müller's calls for renewed fiscal relief measures are a reminder of the ongoing struggles faced by many households. His advocacy for stricter regulations, energy cost reductions, and renewed consumer bonuses underscores the need for continued support for those most affected by the pandemic.
Other sectors, like gastronomy, furniture retail, and online retail, may have circumvented the intended relief provided by the temporary VAT reduction, according to Müller. Despite the German economy's recovery signs, ongoing concerns in finance, business, politics, and general-news revolve around the need for continued support for consumers, particularly in the forms of stricter regulations, energy cost reductions, and renewed consumer bonuses.
