Saturday, October 1, 2022

German leader assembles employers, unions to tackle inflation

BERLIN ( Associated Press) – German Chancellor Olaf Scholz gathered representatives from top employers and labor unions in his Berlin office on Monday to discuss ways to address the impact of rising prices while halting a spiral of inflation in Europe’s largest economy. can be searched.

The government billed Monday’s meeting for the first time in a series aimed at finding a broad coalition to resolve as Germany’s annual inflation rate Stands at 7.6%, which is close to a half-century high. The head of Germany’s central bank was also on the guest list.

Scholz’s spokesman, Stephan Hebstreit, said that “we have to get the results in the fall,” but did not specify when exactly.

In Germany, wage deals are usually settled in negotiations between employers’ associations and unions that cover the entire industrial sector.

When he announced “concrete action against price pressures” a month ago, Scholz pointed to a recent agreement in the chemical industry as a “very interesting” solution.

Employers and worker representatives agreed on a one-time payment of 1,400 euros ($1,460) per employee to help counter rising prices. But he also postponed talks on formal wage hikes until October, hoping that by then the economic outlook would be clear.

On Sunday, Scholz sought to dispel suggestions that he thinks such lump-sum payments should replace formal pay increases. “No one is proposing that the actual wage increase should not be because of this,” he told ARD television.

Germany temporarily lowered taxes on diesel fuel and gasoline in early June and introduced an ultra-cheap ticket Which allows people to use all local and regional public transport for nine euros a month (less than $10). The measures are to last for three months.

Nation World News Desk
Nation World News Desk
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