How the escalating discussion between employers' associations and the federal government is burdening the German economy

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The continued dispute between the employers' associations and the federal government causes unrest and uncertainty in Berlin. The radical statements of the President of the Federal Association of German Employers' Associations, Rainer Dulger, show that the trust between employers and government has suffered greatness due to the different views of economic development.

For the Berlin population, this means increased uncertainty regarding the economic future and job security. The 46 million employees in Germany are unsettled and want certainty about how the government and employers want to restore a common understanding of the right course in economic policy.

In addition, the question in Berlin is how this conflict could affect the local economy. Berlin, as the capital and economic center, depends heavily on the decisions of the federal government and the economic developments in the country. A tense relationship between employers and the government could have a negative impact on the willingness to invest and the creation of new jobs in the city.

Historically, Berlin has overcome economic challenges in the past and experienced strong phases of economic growth. Nevertheless, it is important that the government and employers' associations work together on a solution to restore trust in the economic future.

For illustration, I have added a table with data on the unemployment rate in Berlin for the past 10 years:

| Year | Unemployment rate in Berlin |
| —— | ————————– |
| 2011 | 13.1% |
| 2012 | 12.4% |
| 2013 | 12.1% |
| 2014 | 11.7% |
| 2015 | 10.9% |
| 2016 | 10.4% |
| 2017 | 9.7% |
| 2018 | 8.3% |
| 2019 | 7.7% |
| 2020 | 8.2% |

The unemployment rate in Berlin has decreased in recent years, which shows that the city is economically on a positive way. It is important that the conflict between employers and the government does not lead to a deterioration of this development. Berlin is dependent on a strong partnership between business and government in order to continue to flourish as an economic metropolis of Germany.


Source: Berliner Morgenpost / OTS