Reform of Agenda 2010: necessary corrections or reform reversal?

Introduction of minimum wages, reform of the unemployment insurance system: Did the federal government reverse its reform-policy this summer or were these necessary corrections for a continuation of the Agenda policies? For CSU chairman and Bavarian Minister of Finance, Erwin Huber, the reform programme Agenda 2010 made a contribution to the current economic upturn in Germany, but it was also incomplete, since it focused on the labour market. For this reason it is now important that further reforms in other areas follow. It is not a good sign that the SPD is withdrawing more and more from the reform policies of the Schröder government. Michael Hüther, German Business Institute (IW) in Cologne, fears that the federal government initiated a reform-policy turnaround this summer instead of consistently continuing to develop the Agenda 2010 reforms. Policy-makers ignore the empirical evidence with their plans to introduce a comprehensive, industry-specific minimum wage or when they extend unemployment benefits for older workers. Klaus Brandner, Federal Ministry of Labour and Social Affairs, stressed the effects that the Agenda policies have had especially in creating more jobs. The corrections are necessary, in his opinion, and in accord with the goals of the reform policies of involving as many as possible in the benefits from a healthy economy and in finding good jobs with fair and suitable pay and legal protection. For Otto Kentzler, German Confederation of Skilled Crafts (ZDH), the recent decisions of the government are in opposition to the spirit of the Agenda. He warns politicians not to seek publicity in social policy at the expense of the structural reforms that have been made. For Thomas Bauer, RWI Essen, the decision to extend the duration of unemployment benefits for older workers is not in accord with the tenants of an open market economy and will likely hurt those that it intends to help.