GERMANY: THE COSTS OF EXPORT PROFITS

BERLIN – A new study on the minimum wage in Germany and the most recent metal industry collective agreements leads to the conclusion that the German elite intends to continue the social dumping and the policy of wage restraint for the maximization of German industrial profits through continuing excessive exports. On the one hand, this strategy is at the expense of other eurozone countries, affected, to a growing extent, by the socio-economic imbalance. On the other, it creates an enormous social gap in Germany. The minimum wage is in relationship to the average income much lower in Germany than in other EU countries, and it has been sinking in real value ever since its introduction in 2015. Due to the dismantling of the welfare state, the risk of sinking into permanent poverty with the loss of employment is also higher in Germany than in any other EU country. The German government is continuing its years-long pursuit of its policy of facilitating export with social dumping – also in the face of, at times, hefty criticism from abroad. 
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