Price increases put the government under pressure to act last year. She responded with an instrument that many only knew from the history books. Now that should be the end of it – for the time being.
The federal government is suspending the concerted action with trade unions and employers, which was justified because of the high inflation. In view of the improved situation, a meeting scheduled for March will not take place, said deputy government spokesman Wolfgang Büchner on Monday in Berlin. “The measures taken are working.” The “Handelsblatt” had previously reported on it.
Federal Chancellor Olaf Scholz (SPD) started the exchange with the social partners as well as representatives of science and the Bundesbank last summer. Ways against the high price increases should be discussed. The top group met three times, most recently in October. Büchner referred to the gas and electricity price brakes that were then decided and the inflation compensation premium. “It is now part of a large number of collective bargaining agreements.” Employers can grant their employees an amount of up to 3,000 euros tax- and levy-free.
The concerted action can be reactivated at any time
A spokeswoman for the Ministry of Economy referred to the annual economic report, which predicts an inflation rate of 6.0 percent for the annual average in 2023 compared to the previous year. According to the Federal Statistical Office, consumer prices increased by 6.9 percent on average in 2022 according to revised data.
Büchner announced that the “concerted action” could be activated again at any time, should the situation require it. After the extreme rashes caused by the Russian war of aggression against Ukraine, Germany got through the winter well. “The fact that we are suspending concerted action does not mean that all problems have been solved.” Scholz had made it clear that such votes “should not be permanent” and that there should be no wage negotiations.
The concept of concerted action is known from the times of the first grand coalition. In view of the first economic crisis in the Federal Republic, Economics Minister Karl Schiller (SPD) called together representatives from the government, the Bundesbank, business associations and trade unions in 1967. Concerted means agreed – that is, the attempt to voluntarily reconcile interests.
Source: Stern
