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Short-time work allowance is extended: the reactions

2020-08-26T11:13:35.286Z


"Targeted and inevitable", praise some. But the extension of the short-time allowance also triggers heavy criticism, a CDU politician railed against it verbally.


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Worker in the Meyer shipyard in Papenburg: Many shipbuilders on short-time work

Photo: 

Sina Schuldt / picture alliance / dpa

On Tuesday evening, the leaders of the CDU, CSU and SPD agreed to extend the simplified short-time allowance. However, a few hours after the agreement, the first severe criticism was voiced. The chairman of the middle class parliamentary group of the Union faction, Christian von Stetten, called the plans unrealistic. "In addition to the necessary support for industries affected by state sanctions and their employees, hundreds of thousands of people throughout Germany are financed a sabbatical at the expense of the general public, without financial participation from the employer," said von Stetten.

The fact that the companies on short-time work do not have to contribute to the financing of short-time work leads to abuse. "It would have been completely sufficient to additionally protect those industries that are particularly affected by the state restrictions until the end of 2021." The coalition is trying to ensure full employment not because of economic strength or wise political action, but through planned economy measures at the expense of the next generation.

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Christian von Stetten: Expenses at the expense of future generations

Photo: Hein Hartmann / imago images / Future Image

Von Stetten's party friend, Federal Minister of Economics Peter Altmaier, on the other hand, defended the resolutions as an important signal for companies and employees. This would help "survive this serious crisis and preserve jobs." Federal Labor Minister Hubertus Heil also praised the plans: The Federal Republic is currently in the "deepest economic crisis of our generation," said the SPD politician. This crisis will "not be over on January 1st", short-time work is "the most stable bridge over a deep economic valley".

Financing the short-time allowance was "admittedly very expensive," said Heil. But mass unemployment would be "much, much more expensive". The deputy FDP chairman Katja Suding warned against this in an interview last week: "If, as the government does, you artificially keep industries that have been ridden dead, only tax money is burned - and the companies die anyway, just maybe a year later. "

DIW boss Fratzscher: extension "expedient and inevitable"

In eight-hour discussions, the Union and the SPD decided that short-time workers would receive wage compensation for up to 24 months instead of the previous twelve months. Millions of workers who are currently on short-time work due to the corona pandemic could benefit from the agreements. The special regulations introduced as a reaction to the crisis to facilitate access and the amount of payments are now to be maintained until the end of 2021. State aid for small and medium-sized enterprises should also run longer than previously planned. These include bridging allowances for companies, a further suspension of the obligation to file for insolvencies and easier access to basic security systems, for example for self-employed people.

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The economist Marcel Fratzscher welcomes the agreements. "The extension of short-time working allowances and help for companies are expedient and inevitable," said the head of the German Institute for Economic Research (DIW). "We have to be prepared for about two to three hard years before our economy gets back on the road to some extent." It is a misunderstanding of the ordoliberals if they believe that such aid hampers structural change. After all, it is primarily young companies and medium-sized companies that are particularly hard hit by this crisis, but that are extremely important for this structural change and the competitiveness of the German economy.

Employers and employees satisfied

Many companies would have used up their reserves in the first Corona wave and would have to lay off employees. "They might not survive a second wave," warned Fratzscher. Around five million people are currently on short-time work. The number will probably rise again after the end of the tourism season. "We must also not forget that short-time work benefits primarily benefit employees with low incomes, i.e. those who now have to be particularly protected from the consequences of the crisis."

Representatives of employers and employees also praised the agreement. The IG Metall chairman Jörg Hofmann said: "It is good that the coalition partners have extended the regulations on the duration of drawdowns and the addition of short-time work benefits and that there are tax breaks for employer subsidies." It is also correct that the full reimbursement of social security contributions to employers will in future be linked to the obligation to train employees. The chief executive of the employers' association BDI, Joachim Lang, said the coalition had recognized the seriousness of the situation. "The extension of stabilizing measures such as bridging aid for small and medium-sized companies as well as relaxation of insolvency law are necessary to stabilize the weakened economy. Many of our companies are still in the grip of the corona crisis."

According to the coalition resolution, the federal government bears the costs of the extended short-time allowance: it grants the Federal Labor Office federal aid that does not have to be repaid. Federal Finance Minister Olaf Scholz (SPD) recently put the costs at around ten billion euros.

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apr / dpa / Reuters / AFP

Source: spiegel

All business articles on 2020-08-26

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