Criticism from the CDU at longer reference time for short-time work benefits

Employment office in Aschersleben, about dts
Employment office in Aschersleben, about dts
Before the cabinet decision to extend the period of short-time work allowance, well-known CDU representatives criticized the coalition plans.

"The state payment of the short-time work allowance should cushion the hard economic dip caused by the corona lockdown, but must not become a permanent instrument," said Wolfgang Steiger, Secretary General of the CDU Economic Council, the "Rheinische Post". The Federal Employment Agency expects a deficit of 2020 billion euros as early as 30.

"In addition, the economy has already recovered in many areas," said Steiger. “That is why the Economic Council considers an extension of the short-time allowance until the end of 2021 to be excessive.” Friedrich Merz, who is running for chairmanship at the CDU party congress on December 4, reiterated his criticism. Too long a reference period "can lead to a blockade of the labor market," warned Merz. “Short-time working allowance is actually an instrument for overcoming a crisis in the short term. If it is paid for too long, there is a risk that employees will be detained in their current companies with short-time work, even though they are urgently needed elsewhere, "said Merz of the" Rheinische Post ". The cabinet wants to decide on Wednesday to extend the maximum duration of short-time work benefits from twelve to 24 months by the end of 2021.