Government suspends concerted action due to good economic development

by time news


In the energy crisis that followed the Russian war of aggression, the federal government thought it would be a good idea to work closely with unions and employers.
Image: Omer Messinger

During the energy crisis, the federal government relied on close coordination with employers and trade unions at a very early stage. A meeting of the “Concerted Action” planned for March has now been cancelled. And even more.

DThe government is temporarily suspending the regular consultations with trade unions, employers and science on price developments that began last year. In Germany, economic development has stabilized in recent months, said Deputy Government Spokesman Wolfgang Büchner on Monday. The meeting of the so-called concerted action planned for March will therefore not take place.

The format has proven its worth, emphasized Büchner. Therefore, the concerted action will not be abandoned, but only put on “standby”. The fact that the government is suspending the consultations does not mean “that all problems have disappeared,” he added.

Chancellor Olaf Scholz (SPD) had invited the social partners, the Bundesbank, the Council of Economic Experts to assess the overall economic situation and the Federal Ministers for Economics, Finance and Labor to the Chancellery for the first time last July. The Concerted Action met three times, most recently in October.

One result was the inflation compensation premium decided by the government: companies can still pay out up to 3,000 euros to their employees tax- and duty-free until the end of 2024. This “was very well received,” said Büchner on Monday.

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