RTTNews - German companies are set to reduce headcount after federal elections on September 27, according to a Financial Times report on Monday. Firms are restraining from announcing big job cuts before the election.
The newspaper cited Hakan Samuelsson, chief executive of the German truck and engineering group Man as saying that Germany is currently protected from change. But, after the elections it is normal that the messages will change.
Commerzbank analyst Eckart Tuchtfeld said in a note on August 21 that the pro-business Free Democratic Party's platform contains numerous proposals regarding the labor market. They could curtail employee rights and make labor a more flexible resource so as to create new jobs. But, the employee wing of the Christian Democratic Union/Christian Social Union would possibly would not fully support this.
The analyst added that a Conservative-Liberal government would implement only a watered-down version of the FDP's agenda. Meanwhile, in a grand coalition, these reforms would have virtually no change of being carried out.
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