Inflation brake: government suspends “concerted action”.

The federal government has ended the “concerted action” to combat inflation for the time being. A meeting with employers and unions planned for March has been cancelled.

From the Federal Government’s point of view, the “concerted action” was a success. Suggestions from the social partners from the talks were included in the relief packages, said Deputy Government Spokesman Wolfgang Büchner.

He pointed out that the inflation compensation premium was used in many collective bargaining agreements, that the electricity and gas price brake was in effect and that the economy was stabilizing. That’s good news, the deputy government spokesman said.

“Concerted action”: Economy stabilizes

And therefore the “concerted action” could be suspended for the time being. In concrete terms, this means that the Chancellery canceled the next meeting of the group, which was scheduled for March. If the situation requires it, the federal government made it clear that the format can be reactivated at any time.

Chancellor Scholz had started the so-called “concerted action” last year. The goal: to bring employers, trade unions, science and the federal government to one table and work out proposals together to reduce the burden of the sharply rising prices on the economy and the population.

inflation declining

A total of three meetings took place, the last in October 2022. The federal government expects six percent inflation for the current year. Inflation last year was 7.9 percent.