This morning, via a N-TV chat piece....the German Minister of Labor (Heil, SPD) is making a call for increased 'cash' for German workers on 'short-time' work.
For those unfamiliar with 'short-time'....it's a German vehicle that the company can put you on a furlough (still on the books, but not working). The government, via a funding account will basically cover you, with 60-percent of your normal pay (if you are single) and 67-percent if you have kids.
The money 'funnel' has been around for a number of years, and often used by various companies for harsh periods of negative economics.
So what Heil is talking about....is a raise of the state funding to 80-percent of your normal paycheck.
Most Germans will suggest that you can go for about 90 days with the normal 'short-time' situation before you start to have problems. The 60-percent deal isn't that great of a benefit, but it allows companies to shut-down and at least give you a marginal check in this rough period.
The problem with Heil's proposal? Some economic experts think that a fair portion of the German public will be on furlough for six months as a minimum. Throwing another 20-percent might be helpful but the cash will have to come from the government tax revenue bucket.
Odds of this happening? Unless things dramatically change over the next month.....I might go and suggest this will happen by the end of May.
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