Germany's Social Democrats reformed the national system of unemployment benefits while they ruled with the Greens between 1998 and 2005. Now their leader Kurt Beck wants to backtrack on the reforms. His main critic, Franz Müntefering, has given in, and German papers fear the worst. SPD leader Kurt Beck, right, and his party colleague Franz Müntefering, Germany's Vice Chancellor, have not been on good terms. Kurt Beck, the leader of Germany's Social Democrat Party (SPD), caused a stir several weeks ago by announcing his intention to revoke significant parts of Agenda 2010, a welfare-reform package introduced under former Chancellor Gerhard Schroeder in 2003. The announcement led to a long dispute between Beck and German Vice Chancellor Franz Müntefering, who feels Beck's proposals endanger much of what the SPD has achieved. Now Müntefering has capitulated, recognizing the persistent unpopularity of Agenda 2010 among Social Democrat voters. The declared aim of the Agenda 2010 reforms is to trim Germany's generous welfare state and stimulate the economy. One of the most controversial elements of Agenda 2010 is a new unemployment benefits regime known as Hartz IV. Hartz IV shortens the period of time during which full unemployment benefits are paid out. Beck wants to extend this period again, in accordance with a model developed by the German Confederation of Trade Unions (DGB).
Germany's Social Democrats reformed the national system of unemployment benefits while they ruled with the Greens between 1998 and 2005. Now their leader Kurt Beck wants to backtrack on the reforms. His main critic, Franz Müntefering, has given in, and German papers fear the worst.
SPD leader Kurt Beck, right, and his party colleague Franz Müntefering, Germany's Vice Chancellor, have not been on good terms. Kurt Beck, the leader of Germany's Social Democrat Party (SPD), caused a stir several weeks ago by announcing his intention to revoke significant parts of Agenda 2010, a welfare-reform package introduced under former Chancellor Gerhard Schroeder in 2003. The announcement led to a long dispute between Beck and German Vice Chancellor Franz Müntefering, who feels Beck's proposals endanger much of what the SPD has achieved. Now Müntefering has capitulated, recognizing the persistent unpopularity of Agenda 2010 among Social Democrat voters.
The declared aim of the Agenda 2010 reforms is to trim Germany's generous welfare state and stimulate the economy. One of the most controversial elements of Agenda 2010 is a new unemployment benefits regime known as Hartz IV. Hartz IV shortens the period of time during which full unemployment benefits are paid out. Beck wants to extend this period again, in accordance with a model developed by the German Confederation of Trade Unions (DGB).
