ECONOMIC-POLICY FOR FULL-EMPLOYMENT - PROPOSALS FOR GERMANY

Since the mid-1970s, Germany has suffered high unemployment levels. In 1996, there was a shortfall of 6-7 million jobs. Unemployment, which means a loss of production, and is the main cause of poverty and the f iscal crisis, has been exacerbated by reunification and by recent corp orate and government strategy. This subordinates all social goals to t hat of international competitiveness, with downsizing and unemployment used to hold down workers' wages, social benefits, rights and aspirat ions. The article argues that any alternative economic policy for full employment, more social security, ecological sustainability and econo mic democracy must, therefore, be based on large-scale public investme nt, an expanded public sector, reduced working hours and a targeted la bour market policy. This would be mostly self-financing and could be d efended against a hostile economic environment but would require major changes in the distribution of income and power. The Maastricht Treat y presents new but not insurmountable obstacles.