Trade Union for 150 billion package and car purchase premiums

by Thorsten Koch

The IG Metall, a German trade union, has advocated an economic stimulus package of more than 150 billion Euros in order to avert sustainable damage from the German economy. IG Metall chairman Jörg Hofmann emphasized that according to economists, an economic stimulus package should be at least 3 percent of the gross domestic product. This alone included 100 billion Euros. To support municipal budgets, another 50 billion Euros would be needed. About 10 percent of business enterprises are in acute bankruptcy risk, which could lead to a downward spiral, Hofmann said. “This affects over 100,000 employees who could quickly fall into unemployment.”

Suppliers also affected

“The auto industry is Germany’s key industry. If too few cars are bought, it does not only affect the employees in the car factories and suppliers.” Then there was a lack of orders for the supplier industry, such as the machine tool construction and the steel industry. “If the auto industry stumbles, entire branches will completely collapse economically.” Purchase premiums for cars had to be included in an overall package to promote all industries and make a contribution to reducing CO2. It needed to have a job-securing effect, according to the trade union.

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