Preview

European crisis; Germany and the role of its trade unions

Powerful Essays
Open Document
Open Document
1630 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
European crisis; Germany and the role of its trade unions
European crisis: Germany and the role of the trade unions
Germany is usually presented in the mainstream media as having successfully weathered Europe’s vast economic crisis while German Chancellor Angel Merkel from the Christian Democratic Union (CDU) has gained enormous influence on the European political and financial scene.
By contrast, in protests across Greece, Spain and other countries hit hardest by the crisis references about
Germany as the “Fourth Reich” are increasingly being voiced. Inside the country ordinary working people are made to think that their taxes are paying for the debts of the southern European countries, caused, according to the tabloid media, by lazy Mediterranean workers who never meet their tax obligations.
What role, if any, have Germany’s unions played in fighting these myths of Merkel, the CDU and the
German gutter press like Bild?
Capital 5, Labour 0
In 2000-01, at the time of the dot.com financial crisis, the first coalition government of the SocialDemocratic Party (SPD) and Greens (the so called Red-Green coalition) was in office, elected in 1998 during times of economic growth.
In the context of that crisis and of revelations about the “ineffectiveness” of the social security system, the government set up a commission, led by former Volkswagen AG human resources director Peter Hartz, to develop recommendations for changes that would help halve the 4 million registered unemployed within four years.
At the time the unemployment rate in Germany was 10.8%, made up of 8.5% in the western states and
19.2% in the eastern states. By June 2012, it was 6.6%, with an additional 8.8% of under-employed people, covering those unemployed engaged in compulsory “one euro job” schemes and those who are unemployed but enrolled in further education programs.
The Hartz commission consisted of representatives from Germany’s big corporations, such as
DaimlerChrystler, Volkswagen, BASF and Deutsche Bank, along with two union

You May Also Find These Documents Helpful

  • Good Essays

    - The younger migrant population's inability to find jobs in their home country, combined with Greece's need for cheap labor…

    • 129 Words
    • 1 Page
    Good Essays
  • Powerful Essays

    Case Study 7

    • 2012 Words
    • 9 Pages

    Assuming the total population is 100 million, the civilian labour force is 50 million, and 47 million workers are employed, the unemployment rate:…

    • 2012 Words
    • 9 Pages
    Powerful Essays
  • Better Essays

    Marshallism In Germany

    • 1279 Words
    • 6 Pages

    Two nations arose from the ashes of the Third Reich, West Germany, the BDR, occupied by the Western members of the Allied powers, and East Germany, the GDR, occupied by the Soviet Union. As a result of conflicting ideals between East and West, the two Germany’s would develop separately until their eventual reunification at the end of the 20th century. It is an indisputable fact that German culture was forever changed as a result of the outcome of World War II, and the horrors perpetrated by Adolf Hitler’s Third Reich. From the moment of surrender onwards, the culture of Germany would begin to be defined by the occupiers of Germany. In West Germany, this influence was spear-headed by American implementation of the Marshall Plan. While the Marshall…

    • 1279 Words
    • 6 Pages
    Better Essays
  • Better Essays

    The National Socialist Party came to power through a series of swift, ruthless and devastating actions which firmly established Germany as a fascist state. The centralisation of power in Germany, known as 'co-ordination' (Gleichschaltung), was initiated on the day of the election and was carried out with such clinical efficiency, that the German state was completely transformed within a matter of months.…

    • 1336 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    Windshield Survey

    • 2221 Words
    • 9 Pages

    * The unemployment rate is 8% and more than 75% of the employment is white-collar jobs (CLR search website, 2012).…

    • 2221 Words
    • 9 Pages
    Powerful Essays
  • Best Essays

    This paper will also outline the direct actions that the union movement has taken over time to lobby government for change, or lobby the public for the change in government in matters such as the Work Choices legislation whereby an extensive and calculated campaign was a direct cause in change of government from the non union sensitive coalition government to the Rudd Labor government in 2007.…

    • 3539 Words
    • 15 Pages
    Best Essays
  • Good Essays

    Brandt was the first socialist chancellor (SPD) of West Germany in a very long time. He was not…

    • 1118 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Hyperinflation is when a country experiences a large increase in prices and there becomes an imbalance in the supply and demand for money, causing the concept of inflation to be meaningless.…

    • 341 Words
    • 2 Pages
    Good Essays
  • Good Essays

    European Union

    • 478 Words
    • 2 Pages

    Although they tried to build harmony among themselves that is essential for them to avoid violence and helps to bond a strong political relation among each other .However , various level of social and economic growth as well as the change in values ,principles and political situation between members are the chief causes of discord among them. The current discord among European union (EU) which is one of the biggest financial and political union ,could be the regional economic combination which has been hindered the free trade of some countries across the EU. By local economic integration in today’s globalization, contracts among countries in a geographic region to attain economic improvements from the free movement of trade and investment among themselves (Hill, 2013). The Eurozone is obviously having a decline, unless a new wave of crisis. The London Financial Times states that, an 11 billion euro has been originated in the program for saving the Greek economy. The publication conditions that before the end of this year, the governments of the European nations which are the central holders of Greek debts want to allot an average half of that amount to the Greek government. Or else…

    • 478 Words
    • 2 Pages
    Good Essays
  • Good Essays

    In my conclusion, Unions are being hit with jobs going overseas, a younger generation who does not see the value in using someone else to help you get your views across. The Unions are under attack from governmental parties who have their own agendas concerning why they want to get rid of them. However, Unions are the reason…

    • 901 Words
    • 4 Pages
    Good Essays
  • Better Essays

    Chuck Blahous, a Social Security trustee, has gone as far to say the problems of the Social Security program are “somewhere between critical and too late to deal with it” (News-Gazzette.com) This statement is not a very positive one in regards to the Social Security “crisis”. The August 2012 News-Gazzette.com article, like the U.S. Chamber of Commerce article also states that the problem lies in the fact that there aren’t enough workers entering the work force to pay into the system. This seems to be a common theme amongst those who believe that the Social Security program is headed for certain…

    • 986 Words
    • 4 Pages
    Better Essays
  • Better Essays

    The Social Security System, created in 1935, is the one of the most costly items in the federal budget today. The program was created to provide old age, survivors’ and disability insurance to a large portion of Americans, mostly the elderly who are now out of the work force. The Social Security Act was a major turning point in American history (William, 2007). Today the U.S. Social Security system has been in the news a lot lately. While politicians throw around dramatic words like “crisis” and “bankrupt,” regular Americans have more mundane concerns. Social Security has assisted to defend millions of employees from scarcity in their elder years, but demographic truths have transformed over the last seventy years and are still altering. (Smith, 2010)…

    • 1585 Words
    • 7 Pages
    Better Essays
  • Good Essays

    In the years after the Versailles treaty of 1918 which ended World War I, Germany was in the midst of financial crises and damaged national pride. In 1923 the people savings melted way with the inflation that struck Germany to its core and total destruction of the middle class. The brand new Weimar Republic that was formed after the end of World War I, gave a new political freedom unseen before in Germany. Historically, Germany was ruled by kings and generals and political scene of the times after the World War I was a new system not only for the German people but even for its politicians. In the first general election more than 30 parties fought for the electoral vote. Political clashes between of “pointing fingers” at each other delayed forming of a Government for almost a year.…

    • 1765 Words
    • 8 Pages
    Good Essays
  • Good Essays

    By November 2010, Georg Papaconst y ge tantinou, the Greek fina e ance minister was pract r, tically oblivi ious to the daily chants of protesters in Constituti d o ion Square outside his of ffice. He pon ndered wheth the polici his gover her ies rnment had adopted over the past yea would allo it to avoi the a r ar ow id restru ucturing of it public deb ts bt—in effect, partial defau ult—that man saw as li ny ikely, even if only f severa years ahead al d. Du uring his Oc ctober 2009 electoral cam e mpaign, Geor rge Papandre eou, leader o the Panhe of ellenic Social list Movemen (PASOK), had promised to stren nt , ngthen social protection. But the pre evious gover rnment’s estim mates of the 2009 deficit— —rising from 3.7% of GDP to 6.7% of G P GDP—had proven wildly optimistic.1 Almost as so as PASO took office and Papaco y oon OK e, onstantinou w named finance was minis ster, he had co oncluded that the deficit would be twice as high: 12.7 of GDP.2 A by Nove t w e 7% ember And 2010, the deficit for 2009 was de r etermined to have reached 15.4% of GD 3 h DP. As the deficit numbers wors s n sened, nervou financial m us markets had k kept demand ding higher in nterest rates on governm ment debt. At one point, interest rates reached alm i s most 19%. In the end, on an n nly emerg gency loan from the Europ pean Union (EU) and the International Monetary F ( l Fund (IMF) in May n 2010 had allowed Greece to avoid default In return t a t. the governme had enac ent cted a harsh fiscal retren nchment, red ducing salarie and pensi es ions for pub blic employee raising th retirement age, es, he t cuttin services, and increasing taxes. Now Papandreou was calling for a drast decrease i the ng a w u g tic in numb of public employees.4 ber e Ini itial protests had been vio olent but bac ckfired when rioters set fi to a bank in…

    • 19577 Words
    • 79 Pages
    Good Essays
  • Good Essays

    To repent for WWII floods of Syrians, Afghans and Iraqis have entered Germany, and there “…suddenly become an image of openness, generosity and solidarity.” (Godin, 2015). Following on from racist violence against Turks in the 1980s and early 1990s, there was the rise of the far-right anti-immigrant parties. The most popular group being the German Peoples Union (DVU). It was until recently that the DVU remained quiet, but in 2003, in elections in Bremerhaven, the DVU polled 8.4 per cent and gained four seats in the council assembly (Messina, 2007: 60). When Angela Merkel became the Chancellor of Germany in 2005 she found herself “…in a delicate political…

    • 817 Words
    • 4 Pages
    Good Essays