While often cited during the French election campaign, reforms to the labour market are also a source of controversy in Germany. In particular, it is the set of reforms introduced as part of Agenda 2010 between 2003 and 2005 by former Social Democratic chancellor Gerhard Schröder that are viewed unfavourably by some. During a speech on 20 February, delivered to employee representatives in Bielefeld, social-democrat candidate Martin Schulz acknowledged that his party, the SPD, had made “mistakes”, which he intends to “correct” if he emerges victorious from September’s federal elections. The former president of the European Parliament and rival to Angela Merkel would, in particular, like to extend the period of time during which unemployment benefits can be paid out – dealing with one of the most controversial measures of Agenda 2010. He has also proposed preventing employers from offering temporary contracts without good reason and hopes to maintain the level of retirement pay. His proposals have caused outcry among employers as well as the conservative coalition (CDU/CSU).
Extending the period of unemployment benefit payments. Although the reforms contained in Agenda 2010 were the starting point for economic prosperity in Germany and led to a sizeable reduction in the unemployment rate for some, the measures also brought about a surge in low-salary and temporary work as well as more unstable working conditions for others. Gerhard Schröder’s reforms therefore remain a prickly issue in the country, particularly in the Social Democratic party.
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