Veronika Grimm, a professor of economics and member of the supervisory board at Siemens Energy, has called for loosening Germany’s job‑termination protections by following Denmark’s flexicurity model. “A general relaxation of the protection should be quite sensible” she told the Funke‑Media Group newspapers in their Saturday editions, adding that it would only work if implemented as a comprehensive package.
Grimm views Denmark as a model because its larger employer freedom is offset by a comparatively robust safety net for the unemployed, coupled with an active labour‑market policy that provides intensive placement and retraining. “If you simply apply the relaxation to Germany, you would mainly generate more uncertainty and fear of downward mobility, while the intended effect-more hiring and greater dynamism in the labour market-might be lacking” she warned. “Therefore such a step would only be socially and economically defensible if, at the same time, safeguards in transition periods were strengthened, qualifications were expanded consistently, and placement processes were made markedly more efficient”. According to Grimm, that would be a very positive development that could significantly boost innovation dynamics.
Grimm rejects a proposal by economist Moritz Schularick to soften termination protections only for high earners. She argued that while such differentiation seems socially balanced at first glance, it is systematically questionable on closer inspection. “Termination protection is a safeguard of employment law, not a redistributive instrument; it should be tied to the structure of the employment relationship, not to salary level”. She also pointed out that income is not a reliable indicator of actual need for protection, since older workers or highly specialised employees can still face significant risks of job loss even with high wages. Grimm views the suggestion as a political compromise attempt aimed at making a broader loosening of protection more palatable to society.
Green and Leftwing politicians also dismissed the proposal from the Kiel Institute for International Economics. Janine Wissler, vice‑chair of the Left Party’s parliamentary group, told the Funke newspapers that it represented “the entry into the long‑proposed gradual erosion of core employee rights”. She emphasised that workers, even highly qualified professionals, require planning and security.
The Green deputy‑chair Andreas Audretsch particularly rejected Schularick’s idea of extending the relaxation to public‑sector employees. “The economy will not become stronger if we erode termination protection for public‑sector workers, nursery teachers, social workers, or bus drivers” he said. “Much more important are genuine reforms that lower labour‑cost premiums, which would benefit everyone”.