The German government is moving quickly to implement key aspects of labor market changes recommended by the Hartz Commission on labor market flexibility (see WIT’s for July 23, and July 2, 2002), amidst a lagging economic recovery. Both the International Monetary Fund (IMF) and the head of the recently merged German economic and labor ministries (see WIT for Oct. 8, 2002), announced yesterday that they are predicting lower growth rates for Europe’s largest national economy this year and next than originally forecasted. Taking effect today, the first of the Hartz Commission’s recommendations to be implemented is a program offering companies government loans of up to just under $100,000 for each new job lasting at least one year, that they create for workers who are unemployed or facing unemployment.
See "Berlin steps up plans for reform of labour laws", HUGH WILLIAMSON, Financial Times, October 31, 2002