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Bert Rürup: Government Must Drive Reforms Itself

The social partners are too weak to support major reforms, warns chief economist Bert Rürup. The government must take the lead instead of seeking consensus.

Bert Rürup: Government Must Drive Reforms Itself
Photo: images.handelsblatt.com

The days when trade unions and employer associations could play a major role in shaping large-scale political reforms are over. That is the view of Bert Rürup, chief economist and author, in a guest article for Handelsblatt.

Rürup points to declining membership: the DGB unions had nearly 7.4 million members in 2003; today there are two million fewer, despite a significant rise in total employment. At the same time, about half of all employment relationships are not covered by collective agreements; two decades ago, that applied to less than a third.

Chancellery Summit Without Breakthrough

The failure of the recent top-level meeting at the Chancellery therefore came as no surprise, Rürup says. Representatives of unions and employer associations did attend the invitation but showed no convergence on substantive issues. Negotiating partners could make concessions without fearing for their members – that strength is now lacking.

The attempt by the Union and SPD to resolve the necessary major reforms through broad consensus across party and association lines is doomed to fail. Political leadership cannot be delegated to roundtables, Rürup stresses.

Majorities in the Bundestag Exist

Rürup sees opportunities for reforms: there are still majorities in the Bundestag for fundamental changes.

Source: www.handelsblatt.com