Germany: Lars Klingbeil's Anti-Black Workforce Crusade!
The German government has announced a new law aimed at strengthening financial control and combating black market work. Finance Minister Lars Klingbeil emphasized that the law is designed to ensure that "the honest one should not be the loser."
The proposed law targets various sectors of the economy and aims to digitalize the customs process for improved networking with other authorities. This digital transformation is expected to have a significant impact on the economy, as well as extend to new sectors.
One of the key measures in the law is the closure of the de minimis trade loophole, which previously allowed small shipments of illicit goods to go untaxed and unchecked. This move is expected to increase tariff collection rates, with customs enforcement efforts already achieving nearly 99.5% success in this regard.
The law also includes policies that encourage unauthorized workers to self-deport, offering travel assistance and the possibility of legal return. However, critics have expressed doubts about the lasting effect of these measures, questioning whether self-deport incentives are sufficient to significantly reduce unauthorized labor.
Critics have also raised concerns about the effectiveness of higher tariffs and the closure of the de minimis loophole in substantially curbing black market trade. They worry that stringent enforcement may not address root causes like demand for cheap labor or housing shortages that give rise to black markets.
Additionally, critics highlight that combating black market work requires broader strategies, including social support and labor market reforms, which may be missing from the current law.
It's important to note that the shadow economy in Germany is currently estimated at around 500 billion euros. The new law is part of the federal government's efforts to reduce this figure, as well as to relieve the state budget.
In summary, the proposed federal law emphasizes enforcement and trade regulation measures to combat black market work. While these measures are a significant step towards addressing the issue, critics question if they can effectively resolve the complex economic and social factors sustaining black market labor. The debate continues as the law moves through the legislative process.
The law's enforcement measures on finance and business sectors are also projected to impact politics and general-news, as critics question their ability to comprehensively address the root causes of black market work, such as demand for cheap labor or housing shortages. The digitalization of customs process, aimed at other authorities, may extend to new sectors but critics are uncertain about its long-term effects on unauthorized labor.
