Choked employment policy : a consequence of the Maastricht criteria

Abstract

"The present employment and consolidation policy almost entirely neglects demand. It is largely overlooked that the attempt to keep to the Maastricht criteria is repeatedly costing the country dear, unemployment is increasing and the fiscal situation of the state is deteriorating. The exaggerated attempts at saving made by the regional administrative bodies amount to a Brüning's parallel policy. The Maastricht criteria on national debt are proving to be a fatal choking of rational employment policy. A cyclical component should be added to them. What would be suitable is a demand policy which does not only accept economy-related deficits but also consciously uses anti-cyclical loans extending beyond them. A debt paradox applies to a large extent for the latter point, provided that some preconditions can be created. These include a coordinated demand behaviour from the various levels of the regional administrative bodies, a wages policy orientated towards developing the volume of consumer goods, and support from the monetary policy. Supply-side measures should be included in this. General promotion of the investment climate by lowering the top marginal tax rates or the non-wage labour costs and by lowering interest rates is not sufficient, as the investments are mainly dependent on the demand for the goods produced with them." (Author's abstract, IAB-Doku) ((en))

Cite article

Oberhauser, A. (1996): Geknebelte Beschäftigungspolitik. Eine Folge der Maastricht-Kriterien. In: Mitteilungen aus der Arbeitsmarkt- und Berufsforschung, Vol. 29, No. 2, p. 228-236.