Economic Reform in Germany had been adopted to achieve sustained economic growth.
Reasons Behind Germany Economic Reform:
There were many reasons behind Germany economic reform.
These are stated below.
(1)The main problem in Germany was high labor costs. This problem was further advanced by the additional burden of funding the state welfare.
(2)The rate of employment in some specific sectors decreased.
(3)Non wage labor cost also increased rapidly which abstained the creation of new job in the private sectors.
Economic Reform Measures:
Germany Economic reform measures included the following things:
(1)The job protection rules for firms of less than ten people had been weakened.
(2)A tax cut of amount 18.9 billion dollars which exceeded the previous year’s tax cut by 11 billion dollars.
(3) Unemployment had been consolidated through social help benefits.
(4)Some financial incentives had been given for the jobless people.
(5)Several tax exemptions had been restricted and the tax codes were unified. For some products, for example tobacco, the tax had been increased.
Road to Economic Reform:
The economic reform program in Germany started through various other reforms. These are tax reform, labor market reform, public sector reform, structural reform on both goods and service market and financial and capital markets etc.
Last Updated on : 26th June 2013