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German leaders gather employers, unions to tackle inflation

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The Associated Press

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Berlin (AP) — German Prime Minister Olaf Scholz gathers top employer and labor union representatives in his office in Berlin on Monday to prevent the spiral of inflation in Europe's largest economy while impacting price increases. I sought a way to deal with it.

The government's meeting on Monday as the first meeting in a series aimed at finding a broad alliance of solutions, given Germany's annual inflation rate of 7.6%, nearly half a century high. I requested. The head of the German central bank was also included in the guest list.

Scholtz spokesman Stephen Hebestrite said, "We must have results in the fall," but did not specify the exact time.

In Germany, wage transactions are usually launched in negotiations between employer organizations and trade unions that cover the entire industrial sector.

When announcing "cooperative action against price pressure" a month ago, Schortz pointed out recent agreements in the chemical industry as a "very interesting" solution.

Employers and worker representatives have agreed to pay a lump sum of € 1,400 ($ 1,460) per employee to counter the rise in prices. However, they also postponed talks on formal wage increases until October, hoping that the economic outlook would be clear by then.

On Sunday, Schortz sought to dispel his suggestion that he might think that such a one-time payment should replace a formal salary increase. "No one has suggested that this prevent actual wage increases," he told ARD TV.

Germany temporarily cuts diesel fuel and petrol taxes at the beginning of June, giving people access to all local and regional public transport for € 9 a month (less than $ 10) Introduced a super cheap ticket. The measures will last for three months.