Unemployment Fund: the help without Kungelfaktor

The Federal Agency for work has a short - and a long-term Problem. The short-term is that their expenditure for the unemployed and short-time workers this year

Unemployment Fund: the help without Kungelfaktor

The Federal Agency for work has a short - and a long-term Problem. The short-term is that their expenditure for the unemployed and short-time workers this year due to the crisis to 70 billion euros, double what is the Double your contribution to revenue. There is only one solution: The government needs to help on the Federal budget.

The long-term Problem, how to solve the financial entanglement of politics and contribution to restore the Fund. Because no recovery will make the Federal Agency two-digit billion surplus, with which you can pay back the help just. There are two bad solutions: one would be to increase the contribution rate greatly, and any recovery in the Bud.

The other would be that the Federal Agency is permanently in the government in the chalk, like once the old Federal work prior to 2003. It was an expensive playing field of the political interests and of the social partners gekungels, unfortunately without success in the fight against mass unemployment. It solution remains alone number three: The crisis of aid must flow as a grant without further liability. Only in this way, the work Agency is to save.

Updated Date: 22 June 2020, 13:19

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