Latest news with #StefanieHubig
Time of India
6 days ago
- Business
- Time of India
Germany proposes rent control extension to dampen housing costs
BERLIN : The German government on Wednesday proposed a law to extend rent controls in an effort to make housing more affordable, following through on a key pledge of the new coalition government under Chancellor Friedrich Merz . The measure, which extends the price controls by another four years through 2029, is fiercely opposed by property industry executives. The rules, first introduced in 2015, cap new rentals in urban centres to 10% above comparable rents in the area. "Housing must not become a luxury good," Justice Minister Stefanie Hubig said in announcing the law proposal. It is one of several measures that the new government is planning as it confronts a housing shortage for Germany 's growing population, spurred in part by immigrants from Ukraine and Syria. Germany's property sector hit hard times in 2022, as higher interest rates made borrowing costly. That resulted in falling prices, and it tipped some property firms into insolvency. It has also put a strain on construction, making it hard for Germany to reach a self-imposed goal of building 400,000 apartments a year to alleviate the housing shortage. Rolf Buch, CEO of Germany's largest landlord Vonovia , called the rent controls counterproductive. "This extension of the rent brake will deeply unsettle investors and put further obstacles in the way of new construction," the ZIA property industry association said last week. Data showed last week that the number of apartments completed in 2024 was 251,900, down 14.4% from 2023 and far off the government goal. Germany needs to construct 320,000 new apartments each year by 2030 to keep up with demand, a study in March showed.
Yahoo
6 days ago
- Business
- Yahoo
Longer flight delays without compensation? EU plan divides
The EU is considering allowing airlines to incur longer flight delays without having to compensate passengers in a move that has consumer groups up in arms and is dividing member states. Representatives for the bloc's 27 countries discussed the idea, which proponents say will result in fewer flight cancellations, on Wednesday in Brussels. Carriers currently must pay air travellers in Europe up to 600 euros ($682) for delays of more than three hours, or if a flight is cancelled less than 14 days before departure. Supporters see the rules dating back to 2004 as an example of the European Union's prowess in defending consumer rights. But airlines say they face a hefty bill, which "perversely" often leads them to cancel flights rather than run them with a long delay -- due to knock-on effect on flight schedules. "Extending the so-called delay thresholds will give airlines more time to move planes and crews across Europe to save flight schedules," said Airlines for Europe (A4E), an industry group. Poland, which currently holds the EU's rotating presidency, has picked up plans for reform that have languished since a 2013 commission proposal failed to bear fruit. Warsaw initially introduced upping the maximum non-sanctioned delay to five hours, according to several people familiar with the discussion. But some member states, including Germany, oppose the idea. Even a compromise backed by 15 states to increase the threshold to four hours for flights of up to 3,500 kilometres and six hours for longer ones failed to find enough support to pass Wednesday, several European diplomats told AFP. "Long flight delays are a real nuisance. They ruin the start of well-deserved holidays. They disrupt important plans. They cost valuable lifetime," said Stefanie Hubig, Germany's consumer rights minister. Berlin could not agree to any changes "unilaterally aligned" with airlines' interests "just before the holiday season", she added. It is pushing to keep the three-hour threshold but lower compensation to a flat rate of 300 euros, according to diplomatic sources. - More flights less money - The original plan to allow a five-hour delay could have saved almost 50 percent of flights that are currently cancelled, according to A4E, which represents Air France-KLM, Lufthansa and other companies accounting for more than 80 percent of European air traffic. It would also have stripped about 75 percent of passengers of the right to compensation, said Europe's BEUC umbrella consumer rights group. "This is an unacceptable step back from the current level of protection," it said in a joint statement with consumer associations. Delays and cancellations could cost airlines up to 8.1 billion euros this year, according to the European Commission. Yet, agencies that help passengers get money in exchange for a fee note that of the millions of passengers eligible for compensation, only a fraction each year file a claim. "For European customers this is a disastrous change," Tomasz Pawliszyn, the head of one such firm, Airhelp, told AFP of the planned reform. Since the three-hours threshold has been adopted in other jurisdictions, such as Canada, Turkey and Britain, the changes would generate "confusion" and potentially lead to some European carriers being allowed longer delays than their non-European rivals on some of the same routes, he added. - 'Blackmail' - The proposed changes are part of a broader package of reforms. This includes some clearly passenger-friendly moves, such as barring airlines from charging for hand-luggage of a standard size and weight. It has nevertheless enraged some European lawmakers, for the Polish presidency of the European Council is seeking to push it through with a rarely-used expedited procedure that limits parliament's say. "The first word that comes to my mind about the council's behaviour is blackmail," Andrey Novakov, a lawmaker with the centre-right EPP and the parliament's rapporteur on the issue told AFP. Member states' representatives are to discuss the issue again next week ahead of a meeting of transport ministers on June 5. ub-jhm/ec/yad
France 24
6 days ago
- Business
- France 24
Longer flight delays without compensation? EU plan divides
Representatives for the bloc's 27 countries discussed the idea, which proponents say will result in fewer flight cancellations, on Wednesday in Brussels. Carriers currently must pay air travellers in Europe up to 600 euros ($682) for delays of more than three hours, or if a flight is cancelled less than 14 days before departure. Supporters see the rules dating back to 2004 as an example of the European Union's prowess in defending consumer rights. But airlines say they face a hefty bill, which "perversely" often leads them to cancel flights rather than run them with a long delay -- due to knock-on effect on flight schedules. "Extending the so-called delay thresholds will give airlines more time to move planes and crews across Europe to save flight schedules," said Airlines for Europe (A4E), an industry group. Poland, which currently holds the EU's rotating presidency, has picked up plans for reform that have languished since a 2013 commission proposal failed to bear fruit. Warsaw initially introduced upping the maximum non-sanctioned delay to five hours, according to several people familiar with the discussion. But some member states, including Germany, oppose the idea. Even a compromise backed by 15 states to increase the threshold to four hours for flights of up to 3,500 kilometres and six hours for longer ones failed to find enough support to pass Wednesday, several European diplomats told AFP. "Long flight delays are a real nuisance. They ruin the start of well-deserved holidays. They disrupt important plans. They cost valuable lifetime," said Stefanie Hubig, Germany's consumer rights minister. Berlin could not agree to any changes "unilaterally aligned" with airlines' interests "just before the holiday season", she added. It is pushing to keep the three-hour threshold but lower compensation to a flat rate of 300 euros, according to diplomatic sources. More flights less money The original plan to allow a five-hour delay could have saved almost 50 percent of flights that are currently cancelled, according to A4E, which represents Air France-KLM, Lufthansa and other companies accounting for more than 80 percent of European air traffic. It would also have stripped about 75 percent of passengers of the right to compensation, said Europe's BEUC umbrella consumer rights group. "This is an unacceptable step back from the current level of protection," it said in a joint statement with consumer associations. Delays and cancellations could cost airlines up to 8.1 billion euros this year, according to the European Commission. Yet, agencies that help passengers get money in exchange for a fee note that of the millions of passengers eligible for compensation, only a fraction each year file a claim. "For European customers this is a disastrous change," Tomasz Pawliszyn, the head of one such firm, Airhelp, told AFP of the planned reform. Since the three-hours threshold has been adopted in other jurisdictions, such as Canada, Turkey and Britain, the changes would generate "confusion" and potentially lead to some European carriers being allowed longer delays than their non-European rivals on some of the same routes, he added. 'Blackmail' The proposed changes are part of a broader package of reforms. This includes some clearly passenger-friendly moves, such as barring airlines from charging for hand-luggage of a standard size and weight. It has nevertheless enraged some European lawmakers, for the Polish presidency of the European Council is seeking to push it through with a rarely-used expedited procedure that limits parliament's say. "The first word that comes to my mind about the council's behaviour is blackmail," Andrey Novakov, a lawmaker with the centre-right EPP and the parliament's rapporteur on the issue told AFP.
Int'l Business Times
6 days ago
- Business
- Int'l Business Times
Longer Flight Delays Without Compensation? EU Plan Divides
The EU is considering allowing airlines to incur longer flight delays without having to compensate passengers in a move that has consumer groups up in arms and is dividing member states. Representatives for the bloc's 27 countries discussed the idea, which proponents say will result in fewer flight cancellations, on Wednesday in Brussels. Carriers currently must pay air travellers in Europe up to 600 euros ($682) for delays of more than three hours, or if a flight is cancelled less than 14 days before departure. Supporters see the rules dating back to 2004 as an example of the European Union's prowess in defending consumer rights. But airlines say they face a hefty bill, which "perversely" often leads them to cancel flights rather than run them with a long delay -- due to knock-on effect on flight schedules. "Extending the so-called delay thresholds will give airlines more time to move planes and crews across Europe to save flight schedules," said Airlines for Europe (A4E), an industry group. Poland, which currently holds the EU's rotating presidency, has picked up plans for reform that have languished since a 2013 commission proposal failed to bear fruit. Warsaw initially introduced upping the maximum non-sanctioned delay to five hours, according to several people familiar with the discussion. But some member states, including Germany, oppose the idea. Even a compromise backed by 15 states to increase the threshold to four hours for flights of up to 3,500 kilometres and six hours for longer ones failed to find enough support to pass Wednesday, several European diplomats told AFP. "Long flight delays are a real nuisance. They ruin the start of well-deserved holidays. They disrupt important plans. They cost valuable lifetime," said Stefanie Hubig, Germany's consumer rights minister. Berlin could not agree to any changes "unilaterally aligned" with airlines' interests "just before the holiday season", she added. It is pushing to keep the three-hour threshold but lower compensation to a flat rate of 300 euros, according to diplomatic sources. The original plan to allow a five-hour delay could have saved almost 50 percent of flights that are currently cancelled, according to A4E, which represents Air France-KLM, Lufthansa and other companies accounting for more than 80 percent of European air traffic. It would also have stripped about 75 percent of passengers of the right to compensation, said Europe's BEUC umbrella consumer rights group. "This is an unacceptable step back from the current level of protection," it said in a joint statement with consumer associations. Delays and cancellations could cost airlines up to 8.1 billion euros this year, according to the European Commission. Yet, agencies that help passengers get money in exchange for a fee note that of the millions of passengers eligible for compensation, only a fraction each year file a claim. "For European customers this is a disastrous change," Tomasz Pawliszyn, the head of one such firm, Airhelp, told AFP of the planned reform. Since the three-hours threshold has been adopted in other jurisdictions, such as Canada, Turkey and Britain, the changes would generate "confusion" and potentially lead to some European carriers being allowed longer delays than their non-European rivals on some of the same routes, he added. The proposed changes are part of a broader package of reforms. This includes some clearly passenger-friendly moves, such as barring airlines from charging for hand-luggage of a standard size and weight. It has nevertheless enraged some European lawmakers, for the Polish presidency of the European Council is seeking to push it through with a rarely-used expedited procedure that limits parliament's say. "The first word that comes to my mind about the council's behaviour is blackmail," Andrey Novakov, a lawmaker with the centre-right EPP and the parliament's rapporteur on the issue told AFP. Member states' representatives are to discuss the issue again next week ahead of a meeting of transport ministers on June 5.
Yahoo
7 days ago
- Business
- Yahoo
Germany extends measure to slow rising rent prices in popular areas
A German measure to slow rising rent prices in popular residential areas is set to be extended until 2030. Chancellor Friedrich Merz's Cabinet on Wednesday submitted a draft for an extension of the statutory "rent price brake" until December 31, 2029. The regulation, introduced in 2015, was set to expire at the end of the year. Justice Minister Stefanie Hubig said "housing must not become a luxury good." Tenants will get the protection they need, she argued. "This is a question of justice." Under the measure, which applies in areas designated as having an "overstretched" housing market, rent prices at the start of a new tenancy cannot be more than 10% above the local average. New apartments first rented out after October 2014 are exempt from the regulation. The extension of the rent price brake had been agreed in the coalition agreement between Merz's conservative bloc and the centre-left Social Democrats. The bill must still be passed in the Bundestag, Germany's lower house of parliament.
