Rent cap in Denmark: rents may increase by a maximum of 4 percent

Denmark introduced a rent cap. The rents were set to rise by 10 percent because they are linked to inflation—as they are in Austria. But the Danish government has removed this link in order to ease the burden on households: rents may increase by a maximum of 4 percent until 2024, and increases that have already been made must even be reversed. 
In January, a letter arrived with the new rent—and it wasn’t a nasty surprise: For his 42-square-meter apartment in the middle of Copenhagen, the Dane will pay only 534 euros per month for 2023 instead of 623. The posting of the user “Piitaa-Pain” spread quickly on the Internet. The reason behind this is a rent cap introduced by the Danish government, which applies from January 2023. Denmark is governed by a coalition of social democrats, liberal conservatives and liberal moderates.
Rents to rise by 4 percent instead of 10 percent
In 2023 and 2024, rents in Denmark may rise by a maximum of 4 percent. Actually, rents in Denmark are linked to inflation, just like in Austria. So without government intervention, Danish property owners would have been allowed to raise rents by almost 10 percent. The 4 percent maximum cap applies to existing and new leases, but also to rents that have been increased above the 4 percent in recent months—those must be reduced again.
“It is crucial for the Danish government to take care of Danish tenants. They should not be forced out of their homes and apartments because of rampant inflation,” Interior and Housing Minister Christian Rabjerg Madsen said in a statement.
Madsen’s ministry presented the law limiting rent increases in September. The Danish government is also working on a new law on rent adjustment from 2025, because even then rents will no longer be able to be increased automatically by inflation.
Rents rise by 8.6 percent in Austria
In Austria, too, there is a discussion about a cap on rent increases: for almost 400,000 leases, rents will rise by 8.6 percent in April 2023 – after rent increases last year of over 6 percent. The reason is the automatic increase in rent by inflation (the “consumer price index”) stipulated in the law. In January, the Social Democrats in the National Council propose that the rent increase be completely suspended until 2025 and then capped at two percent.
Property owners are naturally opposed to this, saying that they would then lack the money to maintain the buildings. The Danish government met this objection: If property owners can prove large investments that are not covered by current rents, they can raise rents above 4 percent in exceptional cases. Landlords are not happy about this either and complain about the bureaucratic effort. Experts assume that this very rarely apply to any case.
All in all, according to the government’s calculations, Danes will save 2.7 billion Danish kroner (about 360 million euros) in additional rental costs. Denmark’s inflation rate reached 10.1% in October, its highest level in four decades, but has since fallen to 8.7%. Rent caps also exist in Spain, Portugal, Scotland, and France.
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Nobel Prize Winner Stiglitz wants 70% tax on top incomes

Nobel Prize winner Joseph Stiglitz is concerned about increasing social inequality in the world. The gap between rich and poor is widening. To reverse the trend, he calls for the super-rich to pay a higher income tax and a wealth levy. He says introducing a special global tax rate of 70 percent for top earners “would clearly make sense.”
“People at the top might then work a little less if you tax them more. But on the other hand, our society benefits from a more egalitarian society with greater cohesion,” the former World Bank chief economist explained in Oxfam’s “Equals” podcast, summarized by the British newspaper The Guardian.
Current top tax rates are much lower than what Stiglitz has in mind. A few examples

In the U.S., the top tax rate is 37 percent for incomes above $539,901.
The top tax rate in the U.K. is 45 percent on annual incomes above 150,000 pounds.
In Austria, the rate is 55 percent, but only for annual incomes above one million euros.
In Germany, the top tax rate is paid from an annual income of around 278,000 euros—it is 45 percent.

Only four European Countries have a wealth tax: Spain, Norway, Switzerland, and Belgium.
Joseph Stiglitz: Getting rich is a question of chance—not performance
Stiglitz explained in the podcast that such a new, higher top tax would lead to more redistribution—but at the same time one must also tax wealth fairly. Because that way, the richest people in the world would make a fair contribution, whose wealth has been accumulated over generations. According to Stiglitz, a global wealth tax would have an even greater impact in combating social inequality.
“We should tax wealth more heavily, because a lot of the wealth is now inherited. For example, the young Walmart’s inherited their wealth“, Stiglitz cited as an example.
“One of my friends describes it as winning the sperm lottery. You got the ‘right’ parents. I think we have to realize that most billionaires got a lot of their wealth just by luck.“
The Nobel Prize winner considers U.S. Senator Elizabeth Warren’s proposals for a 2 percent tax on wealth of more than $50 million and a 3 percent tax on wealth of more than $1 billion “very reasonable.” He believes that would “really do a lot to raise revenue that could be used to alleviate some problems our country faces.“
The crisis has made rich even richer
According to Stiglitz, the Corona pandemic has exacerbated social inequality around the world to an “astonishing” degree and “both exposed and exacerbated global inequalities.“
“At a time when so many people’s lives have been so difficult, when they have lost their jobs, when food prices have risen and oil prices have risen, it is shocking how many people and rich companies have made off like bandits,” Stiglitz criticized.
Oxfam study: For the first time in 25 years, extreme wealth and extreme poverty are growing simultaneously
A recent Oxfam study showed that nearly two-thirds of the wealth accumulated since the pandemic began has gone to the richest 1 percent. The charity found that the best-off will have amassed $26 billion in new assets by the end of 2021. That’s 63 percent of all new wealth, with the rest going to the remaining 99 percent of people.
As a result, for the first time in 25 years, the rise in extreme wealth has been accompanied by an increase in extreme poverty. 
The charity said that a tax of up to 5 percent on multimillionaires and billionaires could raise $1.7 trillion a year for the world. That, in turn, would be enough to lift 2 billion people out of poverty and end world hunger.
“While millions of people don’t know how to pay for food and energy, the crises of our time are bringing gigantic increases in wealth for billionaires and billionaires’ wives,” said Oxfam spokesman Manuel Schmitt.
200 super-rich call for global wealth taxes
More than 200 members of the super-rich elite have written to governments around the world in the run-up to the World Economic Forum in Davos calling on them to “tax us, the super-rich, now” to tackle the crisis of inequality. “Patriotic Millionaires”, “Tax me Now” and “Millionaires for Humanity” were behind the campaign.
Among the signatories are Disney heirs Abigail and Tim Disney and “Hulk” actor Mark Ruffalo. Marlene Engelhorn from Austria also participated in the protest—she delivered the letter on site.

Members Phil White and Marlene Engelhorn protest the World Economic Forum in Davos.
It’s time to #TaxTheRich. pic.twitter.com/QwV7aWMPEP
— Patriotic Millionaires (@PatrioticMills) January 17, 2023

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EU to severely restrict export of waste to third countries

The European Parliament voted in favor of a law that restricts the export of waste. Waste from the EU should be processed in an environmentally friendly way—and no longer exported on a large scale to third countries in the EU. There, it often pollutes entire regions via landfills or is incinerated and damages the environment.
On January 17, 2023, the European Parliament voted in Strasbourg in favor of a law that restricts the export of waste from the EU to countries outside the Union. The goal is to reduce pollution and ensure that materials like plastic are reused and recycled instead of thrown away. The whole thing is part of the European Green Deal.
In the future, waste is to be exported only to certain countries outside the OECD area—and they must prove that they process the waste in an environmentally friendly way. For hazardous waste, exports are to be banned altogether. Overall, less waste is to be shipped around the world and less processed in a way that is harmful to the climate, for example incinerated.
“Out of sight, out of mind: this is how we in the EU currently deal with our mountains of waste. In doing so, we not only export our problem, but also leave the task of fair disposal to countries outside the EU. The consequences of this are often illegal landfills, the price of which is paid by the environment and local people,” criticizes Delara Burkhardt, environmental policy spokeswoman for the Socialist S&D Group in the EU Parliament. So now that is to change.
The Parliament’s report on the EU Waste Shipment Regulation was adopted by a large majority: 594 votes in favor, 5 against and 43 abstentions. Talks between the European Parliament and EU member states are to take place this year to finalize the text. Only then can the law come into force.
Most EU waste ends up in Turkey
The amount of waste exchanged around the world is steadily increasing, with 182 million tons traded in 2018, according to the OECD. The European Union plays a central role in this: according to Eurostat, the European Union exported 33 million tons of waste to non-EU countries in 2021. That’s a 77 percent increase over 2004, and Turkey was the main destination for EU waste last year, with about 14.7 million tons—three times as much as in 2004.
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The second-highest amount of EU waste was exported to India this year—about 2.4 million tons. The countries behind are Egypt and Switzerland, with 1.9 and 1.7 million tons, respectively. Eurostat reports that the amount of waste shipped from the EU to China has decreased significantly in recent years. Namely, from a peak of 10.1 million tons in 2009 to 0.4 million tons in 2021.
The EU-Parliament also agreed on a new directive to give platform workers more rights. Including minimum wage, social security and paid vacation. As well as on a new pay transparency directive to end the pay gap between men and women.
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A 4-day week feels like a world without cars for the climate

A comprehensive review of studies from Great Britain shows: Shorter working hours—in the form of a 4-day week—bring relief for the people and the climate. Because not only are we less burdened, so is the environment. In the UK, switching to a four-day week with full wage compensation would save as much CO₂ as taking all private cars off the roads.
Climate awareness in society has probably never been as high as it is now. At least when it comes to the urgency of counteracting climate collapse. According to a survey by the Austrian Climate Ministry, 8 out of 10 are convinced that we have to change our daily behavior in order to stop the climate crisis. The open question that remains is: how? Because small reforms are not enough. We know that here and in other countries.
A review of international studies now shows that a real turnaround in climate policy could be achieved in an area that many people do not even suspect—our working hours. Specifically, if we shorten them. This would achieve several goals at once: it would make the distribution of time more equitable, employees would stay healthy longer, and CO₂-intensive private car use would decline rapidly.
The 4-day week in the UK could save over a fifth of CO₂ consumption
UK environmental scientist:in Laurie Mompelat, together with economist:in Mika Minio-Paluello, has broken down that if the entire UK switched to a 4-day week, the country’s CO₂ footprint could be reduced by 127 million tons per year. That’s a reduction of more than a fifth (21.3 percent overall)—so it’s a very big deal. It would thus have the same effect as taking all private cars (roughly 27 million cars) off the road.
The 4-day week as a tool for more climate protection could make up for much that has been missed or simply not achieved so far. Between 1990 and 2016, the UK managed to reduce emissions within its borders by 41 percent, but emissions resulting from the consumption of goods and services fell by only 15 percent. The latter CO₂ emissions are released abroad—through the production of clothing, electronics or processed food, for example—but are attributed to the British footprint. And consumption issues in particular would have to be addressed individually—which is considered difficult and slow.
Sociologist Juliet Schor: longer working hours cause more emissions
Reducing overall working hours, however, could play a central role in decarbonizing the country. One day less work per week also means one day less commuting, less energy consumption in many businesses—including offices—and less CO₂-intensive activities in private households due to the increase in time prosperity. So people also simply have more time for activities and activities that are slower and more time-intensive, but more environmentally friendly. Sociologist Juliet Schor summarizes the relationship succinctly: “Longer working hours mean more emissions. Fewer hours mean fewer emissions. This relationship is called the scale effect, concerning the size of the economy. So: more work means a bigger economy, means more production. And more production is associated with more emissions.” Schor is studying the 4-day-Work-Week in several countries.
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Even away from the workplace, a decrease in emissions is evident when we have more free time. German technology researcher Philipp Frey explains:
“In fact, at least in Europe and North America, using satellite measurements, a positive correlation can be observed between work days, where more is emitted, and weekend days, which tend to be days off, where less is emitted. Emissions on a work day are almost twice as high as on the weekend.”
When it comes to the climate, we can’t just talk about doing without, but about how we reorganize work
When we have more free time—and therefore less stress—we are more likely to decide to do things on foot, by public transport or by bike. We go shopping instead of shopping online, we cook ourselves instead of resorting to frozen and convenience foods. The positive consequences for our climate cannot be overstated, according to Philipp Frey of the Karlsruhe Institute of Technology Research:
“On the one hand, reductions in working hours can make a contribution to combating the climate catastrophe, and at the same time they are attractive for employees. On the other hand, they are attractive for employees. This gives us the opportunity to get out of a discourse about doing without—and into a debate about how we can increase our prosperity in terms of time. And from this perspective, it’s also a good sign that the latest report of the Intergovernmental Panel on Climate Change explicitly mentions working time reduction as a possible climate protection measure.”
Laurie Mompelat and Mika Minio-Paluello also cite the potential savings in CO₂ consumption through a general reduction in working hours—and also summarize other studies conducted internationally.
Effect 1: Electricity consumption decreases—less heating, fewer electronics
Studies show that a reduction in weekly working hours is generally accompanied by a significant reduction in energy consumption. This is because you save electricity that would otherwise be consumed at the workplace. This is because many devices that are typical in offices, for example, are then in use less. Lighting, heating, elevators, computers, canteens. Energy consumption also drops in the manufacturing sector.
In a large-scale experiment conducted between 2008 and 2009 in the U.S. state of Utah, 17,000 public employees were switched to a four-day week. There, it was shown that enormous energy savings were possible as a result of a work-free Friday. 6,000 tons a year could be saved in Utah by a 4-day week, an interim report on the experiment noted. 12,000 tons if commuting savings are added.
In 2020, Autonomy published a report that concluded: a 3-day weekend could reduce CO₂ emissions by 117,000 tons in the UK—per week.
Effect 2: Commuting decreases
A shorter working week also means less CO₂ caused by cars due to less commuting. In a study by the University of Reading, 2,000 employees and entrepreneurs were surveyed on commuting behavior. Two out of three companies that offered a 4-day week said their employees now drove less. If you extrapolate this to the population, the potential for savings is huge: after all, one in two employed people in the UK currently either drive themselves to work or are passengers. In rural areas, three out of four employees travel to work by car.
If everyone worked one day less per week, millions of cars would disappear from the road (Photo: Sorin Gheorghita/Unsplash).
Effect 3: Private consumption becomes more climate-friendly
A number of studies have examined the impact of working hours on individual household consumption and energy-intensive behavior. One U.S. study combined calculations of the CO₂ impact of goods with data from consumer spending and concluded that households with longer working hours have a significantly larger CO₂ footprint.
In the University of Reading study, two out of three respondents said they would spend the extra day off with family and friends. One in two would cook more at home, and one in four would volunteer in the local area. As a rule, these are activities that are not only fulfilling, but also climate-friendly and good for social coexistence.
Effect 4: Our leisure activities slow down
More free time creates space for more CO₂-poor activities: reading, playing, sports, time with the family. Watching a movie for a change, more walking, more continuing education—in short, deceleration, and self-actualization. Research into the impact of the reduction in working hours in France has demonstrated clear trends toward more domestic and lower-carbon activities. The introduction of the 35-hour work week in France has greatly changed the daily routines of employees.
Contrary to what many feared, people did not use their time off to consume more. Instead, they took care of themselves and lived more relaxed lives.
Effect 5: Shorter working hours are good for our health—even saving CO₂
With a three-day weekend—and more free time—we can spend more time outdoors, complete trips on foot, and be less stressed. Long work hours are associated with stress and an increased risk of burn-out, musculoskeletal complaints and mental illness. Treating all of this, costs money—and consumes resources: medications have long delivery routes, healthcare facilities need energy, and patients and family members as well as staff have to travel distances.
In summary, it is clear that we should think about and shape climate protection and our working hours in a networked way. Productivity has always increased in recent decades. And in the areas where no classic leaps in productivity are possible—health care, nursing, elementary education, education—employees already rarely work full time because the workload of these jobs is high. The path toward shorter working hours would therefore be clear. All that’s missing is the political will.
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Gas price brake, rent cap & tax-free food: Spain most successful in fighting inflation in the EU

Spain has the lowest inflation rate in the EU. What are the Spanish under Prime Minister Pedro Sánchez doing differently—and better? First and foremost, gas price caps and the rent brake are curbing prices. Next year, they will go one step further: VAT on basic foodstuffs will fall, making food cheaper in one fell swoop.
Left-ruled Spain now announced, at the end of December, the third major anti-inflation aid package this year to relieve the Spanish population from inflation. This package includes 10 billion euros, bringing the total amount that the government of Pedro Sánchez (of the socialist PSOE) has put in place since the beginning of the year to cushion inflation to 45 billion euros.
First, the aid package includes a one-time payment of 200 euros for about 4.2 million low-income households (up to about 27,000 euros) and an extension of tax cuts on energy bills for the first half of next year. In addition, all pensions are to be increased by 8.5 percent, and particularly low pensions by as much as 15 percent.
Success in Spain: lower electricity prices and the lowest inflation rate in the EU
There has already been direct aid, concessions on loans and price brakes: rents in the country may increase by a maximum of two percent per year. According to Sanchez, the aim is to ensure that aid reaches those who really need it.
In particular, the gas price brake, which Spain and Portugal were the first in Europe to introduce in May, proved to be an effective intervention to curb prices. Compared with November last year, electricity prices fell by over 22 percent. The gas price brake is in place for 12 months and ensures that gas costs a maximum of 50 euros per megawatt hour. By comparison, wholesale gas prices peaked at 1,000 euros per MWh in the summer.
Inflation over the past 12 months slowed to 6.7 percent in November. It is the lowest rate of the 27 EU member states.
Spain has the lowest inflation rate in the EU (photo: Eurostat)
Bread and milk tax-free: Sánchez government will reduce food prices
Currently, food prices are a thorn in the sight of the population, but also of the government. This is because they have risen by 15 percent compared with the fall of last year.
That’s why Spain’s government announced that it will reduce VAT next year on staple foods such as bread, cheese, milk, fruit and vegetables, and cereals from 4 percent to 0 percent. For pasta and cooking oils, the VAT will be cut in half to 5 percent, he said.
Sánchez also said he would extend subsidies for train commuters for another year and further limit rent increases.
However, the reduction in the price of gasoline for consumers:inside, except the transport industry, will be discontinued.
The result of the left-wing government’s policies: economic growth in Spain was more than 5 percent in 2022 and therefore even exceeded government forecasts. The country will be able to avoid a recession next year.
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