The German government has reached an agreement to maintain the temporary unemployment system, set up during the Covid-19 pandemic, until the end of 2021, Belga News Agency reports.
This extension will cost €10 billion, according to German Finance Minister Olaf Scholz.
The agreement provides for the authorities to pay part of the wages to help companies affected by the coronavirus crisis and thus avoid redundancies. The extension will apply to companies that have introduced the system by 31 December 2020, Zeit Online reported.
- Belgium extends temporary unemployment
- More than one in four workers on temporary unemployment during crisis
Germany is using this temporary unemployment scheme to avoid mass redundancies.
Last month, about 5.6 million German workers were on temporary unemployment.
Belgium also extended its temporary unemployment scheme in July until the end of 2020.
The Brussels Times