West Germany long seemed immune to the economic problems besetting other Western nations, but the difficulties the country is now undergoing as it approaches 1966, the "Year of Stabilisation", prove that it is truly one of the family. ... "What must be done" is the heading of a recent article in the weekly "Die Zeit" ..... “If prices continue to increase at the present rate, if another wave of wage claims strikes us, then we shall lose the major foreign markets in 1966, and register, by 1967 at the latest, a flight from the Demark." The proposals include holding the next Federal Budget below the expected increase of 4% in the gross national product for 1966. All subsidies should be cut by 10% without exception. Other aid, such as children's allowances, should be cancelled or postponed until 1968. The Federal Railways should be given the green light for a rationalisation, and from 1967 should begin a fare policy based upon economic cost. eeee There should be an enforced breathing space in the movement towards wage increases and shorter working hours," The drive by the German unions to increase the amount their members take home in their pey packets is discussed in the same issue. Wolfgang Kruger suggests the need for a German Incomes Council - and the British Prices and Incomes Board is clearly his inspiration, The President of the German equivalent of ' the T.U.C. recently declared the unions' responsibility in maintaining the stability of society and the economy, and almost at once its biggest and strongest member, I1.G. Metall, fired the opening salvo in the campaign for increases in 1966, with a claim for an increase of 9%. The print and paper= workers followed up with a 12% claim, the ecommerce, banking and insurance workers with 12%, and the food, entertainment and hotel workers with 14%
Current estimates indicate that this year the real growth in the German gross national product will be about 5% ; and if price increases are reckoned in, 1965 will end with a nominal plus of 8.8% For 1966 the estimated growth figures are 4.45% real and 6% nominal ..... and, the writer points out, there is a clash between these figures and the unions! claims, ..... With an | Incomes Council ... the voice of the general interest of the economy would be hearde «ee. "In England", concludes the writer, "they decided on this method only when forced by dire necessity. We shell do so before reaching that stage." * (Condensed from "British Industry”, 10-Decenber)
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