Neu Leonstein
12-11-2005, 01:23
http://service.spiegel.de/cache/international/0,1518,384457,00.html
The CDU was successful in its demand to make it easier for businesses to fire people, a measure it believes will make the job market more flexible and encourage investment and hiring. In the future, new hires will face a two year "probationary period" during which employers can dismiss workers easily. Until now, that period has been just six months in most cases.
In an effort to help deal with Germany's rapidly aging population, contributions to the state pension system will rise in 2007 to 19.8 percent from 19.5 percent of gross wages. There was no change to the planned phaseout of nuclear power stations by 2021 -- a policy approved by the outgoing coalition government of the SPD and the Greens.
As you probably remember, the election a few weeks ago in Germany was something of an anti-climax.
With neither party getting enough votes to form a majority, the two major opponents, the Socialdemocratic SPD, and the Conservative CDU had to form a coalition.
Schröder stepped aside, as did the SPD's boss, Franz Müntefering. Foreign Minister Joschka Fischer of the Greens ("I'm sorry, Ai'm naht konvinst!" re: Iraq) also moved aside - but that's a moot point since the Greens are no longer in Government.
Anyways, this is the compromise that the two major parties came up with - the program for the next four years.
http://www.zeit.de/online/2005/46/eckpunkte (In German, I'll highlight the most important points)
Labour Market: It becomes easier to fire people, in return you no longer get the chance to limit employment contracts to less than two years without reason. The East gets a little more welfare money to get it more in line with the West. The "Ich-AG" concept of becoming self-employed and offering your services to firms will continue until at least Mid 2006.
Budget/Taxes: The Euro-Stability Treaty (no more than 3% deficit) is going to be met again by 2007. So that means raising taxes, lowering spending and cutting subsidies. Sales Tax goes up from 16 to 19% from 1st January 2007. And a "Wealth-Tax" of 3% on very high incomes over 250,000 Euros per person...
Family: From 2008 onwards the current benefits will be changed into a single parent support scheme independent of income. Parents that can't work due to their kids will get two thirds of their gross income for one year, to a maximum of 1800 Euros a month.
The Easterlings: Investment subsidies will be kept, by 2006 new ideas for providing more credit and supporting investment in the East will be added. The Soldiarity Payments (Taxes from the West go to State Governments in the East) stay at 156 Billion Euros from now until 2019.
Federalism: The competences of the state will be cut, and the opportunities for state governments to block federal decisions go too. In return the states get a free reign in education.
Europe: Push for a quick resolution for the current EU-budget talks. Germany won't pay more than 1% of GDP. But Germany will not question the agricultural subsidies compromise of 2002 (ie the current system :mad: )
Foreign Aid: By 2006 0.33%, by 2010 0.51% of GDP, with 2015 the time frame for the UN-target of 0.7%.
Any comments?
The CDU was successful in its demand to make it easier for businesses to fire people, a measure it believes will make the job market more flexible and encourage investment and hiring. In the future, new hires will face a two year "probationary period" during which employers can dismiss workers easily. Until now, that period has been just six months in most cases.
In an effort to help deal with Germany's rapidly aging population, contributions to the state pension system will rise in 2007 to 19.8 percent from 19.5 percent of gross wages. There was no change to the planned phaseout of nuclear power stations by 2021 -- a policy approved by the outgoing coalition government of the SPD and the Greens.
As you probably remember, the election a few weeks ago in Germany was something of an anti-climax.
With neither party getting enough votes to form a majority, the two major opponents, the Socialdemocratic SPD, and the Conservative CDU had to form a coalition.
Schröder stepped aside, as did the SPD's boss, Franz Müntefering. Foreign Minister Joschka Fischer of the Greens ("I'm sorry, Ai'm naht konvinst!" re: Iraq) also moved aside - but that's a moot point since the Greens are no longer in Government.
Anyways, this is the compromise that the two major parties came up with - the program for the next four years.
http://www.zeit.de/online/2005/46/eckpunkte (In German, I'll highlight the most important points)
Labour Market: It becomes easier to fire people, in return you no longer get the chance to limit employment contracts to less than two years without reason. The East gets a little more welfare money to get it more in line with the West. The "Ich-AG" concept of becoming self-employed and offering your services to firms will continue until at least Mid 2006.
Budget/Taxes: The Euro-Stability Treaty (no more than 3% deficit) is going to be met again by 2007. So that means raising taxes, lowering spending and cutting subsidies. Sales Tax goes up from 16 to 19% from 1st January 2007. And a "Wealth-Tax" of 3% on very high incomes over 250,000 Euros per person...
Family: From 2008 onwards the current benefits will be changed into a single parent support scheme independent of income. Parents that can't work due to their kids will get two thirds of their gross income for one year, to a maximum of 1800 Euros a month.
The Easterlings: Investment subsidies will be kept, by 2006 new ideas for providing more credit and supporting investment in the East will be added. The Soldiarity Payments (Taxes from the West go to State Governments in the East) stay at 156 Billion Euros from now until 2019.
Federalism: The competences of the state will be cut, and the opportunities for state governments to block federal decisions go too. In return the states get a free reign in education.
Europe: Push for a quick resolution for the current EU-budget talks. Germany won't pay more than 1% of GDP. But Germany will not question the agricultural subsidies compromise of 2002 (ie the current system :mad: )
Foreign Aid: By 2006 0.33%, by 2010 0.51% of GDP, with 2015 the time frame for the UN-target of 0.7%.
Any comments?