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Michael Schlecht

"Economic Stimulus Package" as an Election Gift

"The Federal Government is bidding for a yearly increase of 9 billion Euro for the public investment program. That is less than 0,4 percent. In consideration of the historical dimensions of the economic crisis, this is irresponsible.", stated Michael Schlecht, Member of the Executive Board. He clarifies the Stimulus package to the coalition:

The essential figure is 50 Billion Euro, with that the stimulus package can truly earn its name.  This is the only way to secure and create over 1 million jobs.  The government is not creating a protective umbrella for the middle class, small business owners, unemployed, and their families, and they are just letting them sit in the rain.

The so called stimulus package is a transparent attempt to sway the citizens and voters with an "Election Gift".  The current tax rebate for lower income workers is approximately 4 Euro per month.  Those earning 60.000 Euro yearly gain 22 Euro a month in tax rebates.  In reference to the health-insurance fund contributions, the average income worker will be disencumbered by 7,50 Euro per month.  The measures being taken are unjust, and the domestic demand will not just disappear.  Further scandalous, is the fact that employers will be compensated for their health-insurance fund contributions instead of continuing to further finance the institution itself.

Families are only able to receive hand outs for their children, instead of proper funding.  A single contribution of 100 Euro for every child and an increase of the standard rate of Hartz-IV from 60 to 70 percent is completely inadequate.  People experiencing poverty would see this as a cynical gesture.

On the contrary the new bill that the citizens will be forced to pay is the 480 Billion Euro umbrella created to protect the banks and the almost 100 Billion Euro protection plan for larger businesses.          

After the Federal Government Elections we are threatened with the same old story of budget consolidation.  The government is ready to allow the rich to get off the tax hook, this could mean:  Agenda 2020, Social cut-backs to an unbelievable extent.  Those who have profited from this crisis need to pay their dues, for example through a 5 percent millionaire tax on their assets. In an additional effort to harness 80 Billion Euro.