DGB boss Yasmin Fahimi has criticized the federal government’s austerity course. “Now it will be decided whether Germany will still have a strong industry with good jobs in the future and whether transformation will also bring social progress,” said Fahimi of “Bild am Sonntag” with a view to the upcoming federal budget. “In a situation like this, every global company would invest as much as possible in smart future investments. The federal government, on the other hand, delays investments and looks at the state budget like grandma’s biscuit jar: I only take out what I put in beforehand.” That is poison for the economy.
Fahimi explained: “We already have big problems because too little has been invested and too much has been saved over the past decade: broken bridges and roads, a rail network in need of renovation, and schools that are completely inadequately equipped.” This is costing society dearly. “And you shouldn’t repeat this mistake of wrong political priorities.” When asked if she had any other ideas than new debts, Fahimi said: “If all companies in Germany were to pay fair wages according to collective agreements, that would strengthen purchasing power and would also.” bring billions to the state treasury.” She also reiterated her call for an increase in the top tax rate and for a wealth tax.
With regard to the abolition of parental allowance for couples with more than 150,000 euros in taxable income planned by Family Minister Lisa Paus, Fahimi said that the traffic light coalition was sending “the signal that you cannot rely on the promised state support,” said Fahimi of the ” picture on Sunday”. Parental allowance is “a very successful tool for equality between mothers and fathers,” Fahimi continued. In view of the uncertainty in large parts of the population due to the economic situation, the traffic light coalition was “not well advised to save on the social flank”.
Fahimi also called for a significant increase in the statutory minimum wage from the previous 12 euros to 14.12 euros per hour – which corresponds to the value of the EU minimum wage directive of 60 percent of the median income. Fahimi sharply criticized the behavior of the employer representatives in the minimum wage commission. These ignored “the plights of six million people who work for minimum wage”. That was “just stupid,” said Fahimi.
Fahimi is chairwoman of the German Trade Union Confederation (DGB). She used to be SPD general secretary and then also state secretary in the Federal Ministry of Labor.
At the beginning of July, after long discussions, the federal cabinet approved the draft for the federal budget for 2024. Spending should therefore fall significantly by 30.6 billion to 445.7 billion euros compared to the current year. After the crisis-related additional spending in previous years, an austerity course is to be taken and the debt brake anchored in the Basic Law is to be observed. The total expenditure in 2024 would still be 25 percent above the pre-crisis level of 2019, it said. SPD General Secretary Kevin Kühnert had announced that the SPD wanted to change the budget as part of the deliberations in the Bundestag.
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