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Yahoo
6 days ago
- Business
- Yahoo
Largest German union drops four-day week demands amid economic slump
Germany's largest trade union is dropping demands for a four-day week due to the country's economic struggles. "A four-day week with full wages is not currently on the union's list of demands," said Christiane Benner, chairwoman of IG Metall, on Tuesday. Benner told the Bild tabloid that the policy remains sensible. However, due to Germany's languishing economy, workers are currently facing a reduction in working hours due to employers' cost-cutting measures, she argued. Many German businesses oppose proposals to introduce a four-day week with full pay. In a March survey by the pro-business German Economic Institute, 94% of 823 companies survey said the move would hurt value creation. In addition, almost 70% said they believed that work would go undone and that Germany would be left behind compared to international competitors. IG Metall has emphasized that German companies must take responsibility to ensure their business models are viable in the future, to invest and to secure jobs. "We recognize the seriousness of the situation. But we also see that many companies lack strategies for the future and are not making the necessary investments," Benner said. Germany's economy - Europe's largest - has been in recession for two consecutive years, and experts expect the struggles to continue in 2025.
Saba Yemen
24-05-2025
- Business
- Saba Yemen
Report: 50% US Tariff increase could cost Germany €200 Billion
Berlin – Saba: The German Economic Institute (IW) warned on Saturday that US President Donald Trump's imposition of 50% tariffs on European imports could cost the German economy €200 billion. This came after Trump announced his intention to impose these tariffs starting June 1, describing trade negotiations with the European Union as futile, according to the Russian news agency Novosti. The institute predicted that German GDP would decline by 0.1% this year, with losses likely to increase in subsequent years. The annual contraction could reach 1.1% between 2025 and 2028, and losses could increase to €250 billion if the EU imposes similar tariffs. The report indicated that the United States would also be affected by these measures due to its reliance on certain German imports, such as automated cranes, which constitute 95% of US imports in this sector. It's worth noting that Trump signed an executive order last April imposing tariffs on imports, starting at 10% and then increasing them to some countries based on trade deficits. He then announced a 90-day suspension of the tariffs after more than 75 countries requested negotiations. Whatsapp Telegram Email Print
DW
18-05-2025
- Business
- DW
Germany updates: Merz attends papal inauguration Mass – DW – 05/18/2025
Skip next section Workers in Germany work fewer hours than most international counterparts — IW 05/18/2025 May 18, 2025 Workers in Germany work fewer hours than most international counterparts — IW In 2023, working-age residents of Germany worked an average of 1,036 hours, figures from an economic research institute showed on Sunday. Only workers in two other of the 38 OECD countries put in fewer hours: 1,027 hours in France and 1,021 hours in Belgium, according to statistics from German Economic Institute (IW) quoted by the weekly Bild am Sonntag. New Zealand, the Czech Republic and Israel had the most industrious workers, with 1,402, 1,326 and 1,312 hours of labor respectively performed by each working-age individual on average. Workers in Germany are spending longer working than they did just over 10 years ago, when the average was 1,013 hours. That increase over the past decade has been far more marked in other European countries, however, with a 15% rise in Spain, 21% in Greece and 23% in Poland, compared with 2% in Germany. The IW said it was "necessary to raise individual working hours in Germany." The statistics come as new German Chancellor Friedrich Merz recently triggered a debate on working hours, calling on workers to make "a huge effort" and put in more time. Business leaders have fueled the debate by calling for a public holiday to be canceled.
The Star
13-05-2025
- Business
- The Star
German economy to shrink in 2025 amid global pressures: study
FRANKFURT, May 13 (Xinhua) -- Germany is expected to lag behind other major global economies in 2025, with its economic output projected to contract by 0.2 percent, according to a forecast released Tuesday by the German Economic Institute (IW). The Cologne-based think tank cited U.S. trade policies, ongoing global uncertainties, and persistently low levels of investment as the main factors weighing down the German economy, which has already contracted for two consecutive years. While other leading economies are forecast to return to growth this year, the IW report warns that Germany will remain mired in recession. The institute identified current U.S. trade policies as the most significant threat to the global economy, predicting they could reduce global output by 0.8 percent. The bleak economic prospects are expected to translate into weaker labour market performance. The number of unemployed people in Germany is projected to reach 3 million this summer. "The German economy is in deep crisis," the institute warned in a press release issued in April, noting that one in three German companies plans to cut investment, while up to 35 percent are preparing to reduce their workforce. The IW urged the new federal government to take swift and decisive action to revitalize the economy and counter mounting structural challenges. A separate report released in late April by the German central bank also pointed to a deteriorating outlook. After a modest uptick in economic activity during the first quarter, the central bank warned of a possible setback in the second quarter, describing the overall economic outlook as having turned "significantly gloomier."
Yahoo
13-05-2025
- Business
- Yahoo
German economists predict third year of recession due to US tariffs
Germany's economy is set to contract by 0.2% this year and slip into recesssion for a third consecutive year, according to a new forecast by the Cologne-based German Economic Institute (IW). The country is particularly affected by the ongoing trade conflict triggered by the US government's tariffs, the IW noted. Global uncertainties that are discouraging businesses from making investments are contributing to the downturn, with declines in major purchases such as new machinery and vehicles, it said. High operating costs in Germany further complicate the situation, according to the IW. Germany has seen two consecutive years of recession, with gross domestic product (GDP) having shrunk by 0.2% in 2024. Expectations slightly improved Meanwhile, economic expectations among German financial experts were much more optimistic in May than initially predicted, according to another survey. The Centre for European Economic Research (ZEW)'s economic sentiment index rose by 39.2 points compared to the previous month to +25.2 points. Economists had expected a significantly lower increase on average. "The formation of the new German government, the movement in the customs disputes and a stabilizing inflation rate are contributing to the increased optimism," said ZEW President Achim Wambach. On the other hand, the already very negative assessment of Germany's current economic situation slightly deteriorated again, with the corresponding value dropping by 0.8 points to -82 points. Economists had expected an improvement to -77 points. US trade policy biggest risk US trade policy poses the biggest risk to the global economy this year, according to the IW. Without the US tariff policy, global economic output in 2025 could be up to 0.8% higher, the institute said. The outlook for both Germany's industrial and construction sectors remains grim. Industrial companies are expected to generate less added value this year, following a 3% decline in 2024. High energy prices, rising wages and increasing regulation are placing additional pressure on businesses. After a 3.7% drop in 2024, construction companies are facing further constraints this year, with high construction costs driven by regulation continuing to hinder the sector. The IW has also observed that these trends are now affecting the labour market, with the number of people employed declining since mid-2024. By the summer, the number of unemployed people could reach 3 million, a level not seen since 2010, the economists said. Michael Grömling, head of macroeconomic research at the IW, said Germany's new government now has the opportunity to reverse the trend, pointing at the country's planned special infrastructure fund that could help stimulate the economy.
