Germany: new government liberal party brings layoff protection and minimum wage back in the debate

Liberals in control. According to some conservative leaders, the arrival of liberals to the government shouldn’t lead to a “social freeze.” This is at least what Jürgen Rüttgers, conservative regional Prime Minister in North Rhine-Westphalia, assured, thus adopting Angela Merkel’s line. She recently announced that sectoral minimum wage and layoff protection rules were non-negotiable. In addition, Mr. Rüttgers said that it would be “dangerous to attack unions” and that the benefits of a more flexible labor market would never offset the damages caused by breaking social peace. However, these statements need to be put into perspective. They are negotiation bluff and mostly echo the stands of the CDU’s “social wing,” not of the “economic wing.” Besides, with their excellent election results, the liberals are in the driver’s seat to negotiate the government’s program as early as October 5.
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iable. In addition, Mr. Rüttgers said that it would be “dangerous to attack unions” and that the benefits of a more flexible labor market would never offset the damages caused by breaking social peace. However, these statements need to be put into perspective. They are negotiation bluff and mostly echo the stands of the CDU’s “social wing,” not of the “economic wing.” Besides, with their excellent election results, the liberals are in the driver’s seat to negotiate the government’s program as e

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