Germany extending furlough to 24 months!

[latticechaos]

Saw that Germany was planning to extend their furlough scheme to 24 months because they don't expect the crisis to ease any time soon and they want to help citizens.

Made me feel pretty really, UK is going to see a sackload of job losses over the next few months.

I always felt the French plan for part time furlough was better than our scheme. UK scheme was very generous short term but has a hard ending.

I think extending ours would be a good idea. Some businesses will slow down over winter witgout having had much summer. If any.
Certaly think things like soft play may end up shut again.
But also some people could end up si for 24d if the last person gets it on day 24
I think with masks they are not intending on shutti g shops etc/zoos anything with good SD.
So basically our schools will shut..

How are they going to finance it? I'm not sure Germany has it right, surely that is just delaying the inevitable and also likely to increase feelings of resentment between those working and those on furlough.

Are you interpreting this correctly? Saying they don't expect the crisis to end anytime soon is quite dramatic, given how things are moving.

The economic damage is an entirely different matter though.

@TheGreatWave

How are they going to finance it? I'm not sure Germany has it right, surely that is just delaying the inevitable and also likely to increase feelings of resentment between those working and those on furlough.

They pay a bit less than our scheme, and you can do it part time.

I expect they have costed it out.

Ours is ending too abruptly imo, between now and Christmas will be awful.

German Tax rates are higher than ours see photo

@macaroniinapot

Are you interpreting this correctly? Saying they don't expect the crisis to end anytime soon is quite dramatic, given how things are moving.

The economic damage is an entirely different matter though.

I guess the fact they have halted their lockdown easing and are seeing some more cases may be affecting their thinking?

42% over 55keuros doesn't seem that far off our 40% over £50k?

Errrm I'm on the fence with this tbh.

1. No business can stay closed fully and stay afloat just by paying a percentage of the staffs wages there will be other overheads too that need paying like rent, utilities, insurance that furlough doesn't cover.

2.if the business is open but on reduced staff, if it can survive 24 months without certain employees then they can survive indefinitely without them so its pointless keeping them hanging on. 3.not sure what the benefit system is like in Germany but in the UK many who are furloughed at 80% are now receiving below the NLW with a potential to be even worse off if it goes to 70 or 60% 4.the longer furlough and other schemes go on the longer and higher taxes become it all needs to be paid back in some way or another

Graun article on it www.theguardian.com/world/2020/aug/18/germany-to-extend-coronavirus-furlough-to-24-months

imagine Times, FT, DT have coverage too behind their paywalls

I read today the UK could see 2m job losses. That would be horrible.

This scheme is one that Germany used in 2010 apparently, is the reason their economy didn't get so badly affected.

I'm jealous.

I wasnt furloughed myself, bye, I can just see what's coming in my area and wish it wasn't.

bye = btw

@latticechaos

50k after tax in the UK per month: £3120
50k after tax in Germany: €2790

It's not that much but it is a difference.

Btw, figures are if you are single. You pay less tax if you're married etc

@Theyweretheworstoftimes

German Tax rates are higher than ours see photo

and they have far, far less dependency on the service sector within their economy as opposed to ours

@latticechaos

I read today the UK could see 2m job losses. That would be horrible.

This scheme is one that Germany used in 2010 apparently, is the reason their economy didn't get so badly affected.

I'm jealous.

But furlough only covers staff wages, if companies aren't making any money and still have other overheads to pay the business will still fold and jobs will still go. Many jobs going are from the high street retailers which have been in trouble for quite some time already due to consumer spending habits it seems covid has just been the final nail in the high Street coffin

@boys3

That is definitely in their favour I think.

@frolicmum Yes but it's the accumulative affect of that extra money, times that £330 by 4.2 million which is the number of higher tax payers in Germany according to this article www.thelocal.de/20170418/one-in-11-taxpayers-fall-within-germanys-highest-tax-bracket
and you get an extra £ 1, 386,000,000 which surprised me how so little cod make such a big difference.

I don't really think we can afford for furlough to go on any longer

Little Cod definitely make a difference 🤣 but we aren't talking about fishes 🎏

I'm worried we are making the same mistake as 2010, but bigger this time.

I'm sure us going bankrupt was probably Karmic pay back for all the people our empire murdered and enslaved @ILoveAllRainbowsx you find me a nation that hasn't done something bad in the past.

But for the grace of God or any other deity of your choice goes us if you knew your history then you'd understand that movements like fascism grow across the whole of the world at that time and but for a multitude of small variables we could have been on the wrong side of history.

Germany won't have to deal with the shit that is Brexit like we will. The country is on very shaky ground.