Germany: Angela Merkel plans to eliminate Deutsche Post’s tax advantage

New step in the introduction of a universal minimum wage in postal services (see our articles No. 070770 and 070730), the German government wants to extend to the Deutsche Post's private competitors a privilege, which was until now reserved to the only holder of the monopoly, by exonerating them of the VAT. A few days before the Bundesrat speaks out on the extension of the minimum wage to the postal sector, hundreds of employees from competitor companies demonstrated in Berlin to protest against a wage level which would threaten their job. (Ref. 070838)
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A counterpart to the extension of the minimum wage to the entire postal sector. On October 12, the Bundesrat will speak out on the extension of the law “on posted workers” (“Entsendegesetz”) to postal services, which should enable to enforce to all of the sector’s companies the agreement on the creation of a minimum wage, reached on September 4, 2007, between the services’ union Verdi and the employers’ organization Arbeitgeberverband Postdienste (AGV), dominated by the Deutsche Post (see our

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