UPDATE: German Min: Must Limit Extension To Short Work Hours
(Adds detail.)
By Patrick McGroarty
Of DOW JONES NEWSWIRES
BERLIN -(Dow Jones)- The German government will extend programs that prevent
broad layoffs by reducing work hours, Economics Minister Rainer Bruederle said
Tuesday, but the extension should be clearly limited.
"We must account for the fact that unemployment will increase a bit," as
Europe's largest economy continues to fight the affects of the recent crisis,
Bruederle said, but an extension of reduced-hours programs that have helped
soften the crisis' impact must "be temporary and stay temporary."
Speaking at a business conference in Berlin, Bruederle said he is leading the
search for a "credit mediator" who will represent the government in discussions
with companies that could be hurt if commercial banks remain hesitant to lend.
He added that he hopes to present the mediator this week.
Addressing the conference earlier Tuesday, Chancellor Angela Merkel said a
timeframe for the continued program is still under discussion, though the option
to implement reduced hours is likely to be extended through 2010.
-By Patrick McGroarty, Dow Jones Newswires; (+49 30) 2888-4128;
patrick.mcgroarty@dowjones.com
(END) Dow Jones Newswires
11-24-090940ET
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