Economy, Social Affairs and Finance: What can we expect in 2023?
After an eventful year in 2022, things are likely to continue turbulently over the next twelve months. In addition to numerous global political trouble spots, persistently high inflation, the energy crisis and volatile stock markets are likely to keep us in suspense. There are also minor and major innovations in Germany and our neighboring countries that you should be aware of.
News from the euro
Global problems and interest rate hikes by central banks in the past year were also clearly felt on the foreign exchange markets. The euro temporarily fell below parity against the US dollar and was Most of 2022 in a downward trend.
- Croatia adopts the euro
The market environment for the introduction of the euro instead of the national currency kuna in Croatia on January 1, 2023 could therefore have been better. But EU Commission President Ursula von der Leyen is positive: The country's entry into the Eurozone will strengthen Croatia's economy and “also the euro” and “is a symbol of European strength and unity.”
Croatia's accession also leads to increased coin production in the common currency area. The European Central Bank (ECB) has therefore approved the 19 euro countries and Croatia to produce coins with a total volume of almost 2.6 billion euros, significantly more than a year earlier. As the largest economy in the EU, Germany wants to produce most coins again, the volume of which amounts to 633 million euros - of which 206 million euros are spent on collector coins.
Euro newcomer Croatia is planning to be the 20th country with the common currency to print euro coins with a total volume of 316.77 million euros. These will include the Croatian-born inventor Nikola Tesla.
The kuna-euro exchange rate has also already been fixed: One euro corresponds to 7.5345 kuna. There is a transition period until January 14, during which payments can still be made in both currencies. Kunas from your last vacation can be exchanged free of charge at banks in Croatia until the end of 2023 - up to 100 coins and notes per transaction.
- Elbphilharmonie adorns 2 euro coin
Coin collectors should also make a note of January 2023. That is when the output of 2 euro commemorative coin Hamburg. Their national page (pictorial page) was designed by artist Michael Otto from Rodenbach. It shows the Elbphilharmonie, the new landmark of the Free and Hanseatic City of Hamburg, and is part of the series of federal states. By 2038, all 16 German countries are to be honored with 2 euro commemorative coins and focus on the cultural identity and regional characteristics of the individual countries. These can be monuments and buildings as well as natural beauties of the respective regions.
Citizens' allowance instead of Hartz-IV
It was probably one of the most controversial issues discussed in the past year: Should the new citizen allowance replace Hartz-IV, or not? In the Federal Council, the civil benefit initially failed, but then traffic light and Union agreed on a compromise and initiated the biggest social reform in decades: With the Introduction of citizen benefits from January 2023 The federal government wants to replace the controversial Hartz IV system and offer people in need higher state benefits in the area of basic security.
In principle, the calculations of the standard rates for Hartz IV and Bürgergeld do not differ. Citizens' benefits, however, include inflation compensation, which increases the standard rate for single people from January 1, 2023 from the current 449 euros to 502 euros, i.e. just under 50 euros more per month.
Until 2024, the costs of rent or private home will also be covered without an examination of whether the housing costs are reasonable. Assets of up to 40,000 euros per person also remain untouched — 15,000 euros are added for each additional household member. What is still changing compared to Hartz-IV are the additional income opportunities. In concrete terms, this means that beneficiaries who earn between 520 and 1,000 euros should be able to retain more of their income in the future: The allowances in this area will rise from 20 to 30 percent.
The focus of the job center is also to be shifted from “demanding” to “promoting.” In the future, a plan will be drawn up with unemployed people, which will determine the planned path back to regular work. This can include continuing education, qualification and long-term employment opportunities and focus less on immediate job placement.
Changes for taxpayers and savers
But 2023 also brings Relief for employees, savers and investors, which are likely to have a positive financial impact for most. For example:
- Basic allowance is increased
In 2023, the basic tax-free allowance, i.e. the part of income that is not subject to any tax burden, rises by 561 euros to 10,908 euros. A further increase of 696 euros to 11,604 euros is planned for 2024.
- New income limit for top tax rate
Instead of an income of 58,597 euros so far, the top tax rate in 2023 will only start at 62,810 euros.
- Higher savings lump sum
Saving and investing should also be more worthwhile in the new year. The savings lump sum is therefore increased from 801 euros to 1,000 euros for single people and from 1,602 euros to 2,000 euros for spouses/partners.
Regardless of the federal government's new regulations, saving, investing and investing should be among the “good resolutions” for the new year. For example, although the stock markets were volatile and sometimes marked by large losses in the past year, personal wealth planning consisting of liquid assets and tangible assets is becoming increasingly important. Be it to get a carefree (early) pension, a passive income or more financial freedom to enable.
