Press Release No. 38/2014 IG Metall criticizes the report by the Council of Economic Experts as “old medicine” that is holding back the economy...

Frankfurt am Main – Detlef Wetzel, President of IG Metall, has described the report on the overall economic situation presented today by the German Council of Economic Experts as “old wine in new bottles.” “More of the same old bad medicine—that’s the Council of Economic Experts’ prescription. This prescription hasn’t helped the economy in the past either. On the contrary, it’s obvious to any attentive observer that neoliberal policies were the very cause of the euro and banking crises,” said Wetzel after the Council of Economic Experts presented its report.

Instead of spreading pessimism, the “economic sages” should take note that the economic situation has stabilized and is developing positively. An increase from 0.1 percent to 1 percent speaks for itself. “If we want to reinforce this trend, domestic purchasing power must be improved. That requires higher wages and more investment,” said Wetzel. Claims that the minimum wage destroys jobs and is responsible for the economic slowdown not only ignore the current state of labor market research but also attempt to stir up sentiment with simplistic messages.