More and more politicians of the big alliance want a bigger cut in unemployment insurance contributions than previously envisaged. The contribution rate was supposed to decrease from 6.5 % to 4.5 % of the gross salary on January 1st, 2007. In an interview to Focus (30.10), chancellor Angela Merkel also defended this idea. (Ref. 061084)
“In any case, contributions will decrease by at least two points, and possibly more – according to the improvement of the situation on the job market », said Chancellor Angela Merkel (CDU). Since last summer, conservatives are battling so that the record surplus announced for 2006 by the federal employment Agency (BA) -around 11 billion euros- be used to reduce labor costs in Germany (see article n º 06814). The reduction of unemployment contributions next year will be already financed for half
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