Reform is proven

Hartz IV is a success because the number of unemployed fell by more than 1.4 million. Today we know that reform is proven. Four years ago in Germany, about 5 million people were unemployed. 2009 we had the second lowest unemployment rate since 1994, even though the German economy to cope with the worst economic slump.

In eastern Germany, unemployment, despite the crisis, actually dropped again and is now lower than ever since reunification. The good economic situation in previous years has contributed a contribution. It is not only because there was no economic recoveries. This time, the unemployment rate could be driven down below the level of performance over the previous recession. This is unique. Could benefit long-term unemployed in particular. Employment in low-paid jobs, which has grown considerably, for these people, is the only way.The criticism is justified in terms of the recognition of protected assets. Currently, the limit is 250 euros per year of age – which is undoubtedly too little. Nevertheless, what we absolutely need is an upper limit to avoid extremes. Why, people wonder, should I work full time, if the state the wage difference for part-time work almost completely takes over? People who are not really in need of help should be given, in my view, no state-funded means! Otherwise, there is a subsidy policy, which calls for the state entirely.

Salaries and pensions

Now it’s official that the average gross salary per employee, according to the Federal Statistical Office declined last year by 0.4 percent. If this trend is confirmed for the contributory per capita fees,
which at this stage is by no means Certain , it would have to follow the logic of the development of these pensions.

If workers on average paid less in their coffers , pensions will remain in their normal frames and it will improve the position of pensioners Compared to the working population. The principle is undermined. The bill to pay contributors. Because there is a pension guarantee is not for nothing. Estimates range from roughly 46 billion additional costs – a growing contribution is inevitable.

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Example Greece

Greece can place their bonds only by high-risk premiums in the market. Greek bonds currently bear interest at 6%. Rarely have I read such a clear and consistent policy agenda in the form of an interview. Greek Finance Minister George Papaconstantinou has big plans.

Here are some of them: raise excise taxes, sweeping spending cuts in all departments by 10 percent salary cuts in the public service. In addition: tax reform, social reform, less administration and bureaucracy. Such a drastic remedy could not hurt our economy. Greece, however, is still significantly greater problems than we do. It’s extremely high national debt leads to financing constraints. The country has lived beyond its means for years. Issing said that Misunderstood solidarity lead to dangerous medium term incentives. After all, Spain, Italy and Ireland are already on the mat. Grants are not to do with the no-bail-out clause. What is missing in addition to the Stability and Growth Pact is a compelling exit option for chronic disaster.

Strong Euro is possible only without the aid of Greece

A bailout of Greece by European fiscal policy violates the rules of the EU and threatens the stability of our common currency. Any help would be a breach of contract. Since there is no good reason workarounds.If we now come to the aid of grants Greece, there is a danger that we get an increasingly weak euro. For this aid will have imitator’s effects. As for grants, it is similar in Greece. Structural budget deficits must be fixed otherwise. The example of Ireland shows that the financial markets can react intelligently.

Ireland had similar problems to Greece today and could begin by rigorous consolidation itself again. The only way Ireland could again build trust in the bond markets. Thus, the interest rate differentials to German government bonds are again fallen significantly. Instead, Greece now to help in the short term, the Stability and Growth Pact will be tightened.

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