Minister of Finance Reveals 766 Million Euro Loss to Black Market Labor: Klingbeil Vows Crackdown
- Approx 1 min read
Enforcing stricter measures against uncompensated labor: Klingbeil advocates for more robust action to mitigate €766 million in incurred losses - Enforcement of Fair Employment: Klingbeil Advocates Combat Against Underpaid Workers
Financial controllers have uncovered a staggering 766 million euros in damages due to black market labor in 2024, as revealed by Federal Minister of Finance and Vice-Chancellor Lars Klingbeil (SPD). In conversation with the daily newspapers of the Funke media group, Klingbeil shared this figure before the presentation of the annual customs report today. Klingbeil warned that intensified investigations will expose more illicit activities, protect exploited workers, and secure state revenues. Klingbeil also announced plans to introduce a bill to combat black market labor, scheduled before the summer break.
Klingbeil Advocates for Tightened Customs Enforcement
At a Lüneburg event, Klingbeil declared his intention to bolster controls on black market labor and tax evasion. "There's plenty to look into," stated the SPD leader, hinting at a perceived lack of ambition from his predecessor, Christian Lindner. The potential losses to the state run into billions of euros.
With the absence of sufficient personnel, Klingbeil believes more can be done than in the past: "Those manning the customs posts must be utilized effectively to combat tax evasion." The problem of black market labor has persisted for years, but as a recent appointee, Klingbeil has only been Finance Minister for three weeks.
AI as a Tool in the Fight against Black Market Labor
The figure of 766 million euros in damages from black market labor in 2024 is a substantial increase compared to the preceding year when the damage totaled 615 million euros, in the context of criminal and administrative penalty proceedings in Germany. Experts estimate that the "dark figure" remains significantly higher.
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The Minister of Finance has proposed employing automated data analysis, including AI, in the battle against black market labor. The financial controllers’ focus is, among other things, on the hairdressing industry, cosmetics, and barbershops, as well as nail studios.
- Lars Klingbeil
- Black market labor
- SPD
- Customs
Remember, the German government's use of AI specifically against black market activities in the hairdressing, cosmetics, barbershop, or nail studio sectors has yet to be publicly documented. The government is, however, focused on implementing AI-driven market surveillance and oversight across various sectors, aiming to foster innovation while maintaining coordinated market supervision. Investigations and bills related to the use of AI in the fight against black market labor are scheduled to unfold in the coming months.
- In light of the revelation of a 766 million euro loss due to black market labor in 2024, the German government is considering utilizing AI for data analysis as a tool in the fight against this illegal practice, with a focus on industries such as hairdressing, cosmetics, barbershops, and nail studios.
- The Minister of Finance, Lars Klingbeil, has announced plans to introduce a bill to combat black market labor, which will likely include the use of AI in investigations, scheduled before the summer break, in an effort to secure state revenues, protect exploited workers, and expose more illicit activities.
