Economist Achim Truger Calls for a Substantial Increase in the Statutory Minimum Wage to 15 Euros
In a recent interview with POLITICO, economist Achim Truger emphasized the need for a significant rise in the statutory minimum wage to 15 euros. Truger, who holds the government responsible for the decision, believes that the minimum wage commission should not be the sole arbiter of the decision, as it is a legislative matter ultimately in the hands of policymakers.
Truger dismissed concerns about job losses resulting from a higher minimum wage, stating that research has shown no negative effects on employment. He even suggested that a higher minimum wage could lead to increased productivity. While acknowledging that some low-wage jobs might disappear, Truger argued that the overall impact on employment would be minimal and that the economy could absorb the changes.
The current minimum wage in Germany stands at 12.81 euros and a rise to 15 euros would represent a 17 percent increase. Truger’s proposal would place Germany at the top of the list of industrial nations in terms of the statutory minimum wage. The coalition government, comprising the Union and the Social Democratic Party, had previously agreed in their coalition contract to aim for a minimum wage of 15 euros by 2026.