Yasmin Fahimi, Chairwoman of the German Trade Union Federation (DGB), voiced strong opposition to several ongoing political proposals, including efforts to eliminate the May 1st public holiday, mandates for increased working hours, or any cuts to health insurance benefits. Speaking in an interview, Fahimi stated that these measures were untenable.
She pointed to the current labor market situation, noting that Germany has lost thousands of jobs every month, necessitating expanded short-time work programs. Furthermore, she highlighted that despite having three million unemployed people against only one million open positions, the challenge was not one of labor supply but rather a structural economic weakness.
Fahimi expressed deep disappointment with the performance of the new coalition government (Union and SPD). After one year, she found the government lacked a cohesive industrial and economic strategy that would provide clear planning certainty, encourage innovation, or strengthen regional locations. Instead, she criticized the government for relying on an “outdated neoliberal idea that the market will somehow fix everything”. She was particularly critical of the government’s habit of threatening reforms, often of a painful nature, dismissing such tactics as nonsense.
As a specific example, she critiqued the planned reform of health insurance funds, which focused almost solely on cost reduction. Fahimi argued that what was genuinely necessary were massive structural reforms and improvements in efficiency, warning that the lack of proper oversight allowed some people to exploit the current system.
Regarding the upcoming tax reform, the DGB Chairwoman had more favourable expectations. She advocated for a reduction in income tax for the broader working population and an increase in the basic property tax exemption. However, she insisted that any such tax relief for the many must be accompanied by a higher top tax rate for high earners. Fahimi also warned against the indiscriminate application of tax cuts-or “handout policies”-to corporations, arguing that general company tax reductions were misguided since the current economic weakness did not affect all businesses equally.
Finally, Fahimi pointed to the decision to reduce the specialized levy on the gastronomy sector as a particularly poor example. She questioned the necessity of this measure, noting that the subsidies predominantly benefited large chains such as Subway, Burger King, and McDonald’s. She urged the federal government to be much more targeted and deliberate in its policy decisions.