There is concern within Germany’s business community about how the introduction of a minimum wage will affect the largest economy in the eurozone.
A base rate of 8.50 euros per hour is set to be introduced. Long opposed by Chancellor Angela Merkel’s conservatives, the measure was insisted upon by her centre-left coalition partners, the Social Democrats.
Robert Haver at Baader Bank said he was not against it in principle, but said “the question is how it’s paid for”. He continued, “we need jobs, jobs, jobs…we can’t allow labour costs to rise too much.”
Deutsche Bank the minimum wage as a “wrong policy” choice – while the Federation of German Industries said the government could not afford to be handing out “election gifts.”