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Last Updated: Thursday, 5 August, 2004, 18:01 GMT 19:01 UK
Benefit plans 'rob German children'
By Ray Furlong
BBC correspondent in Berlin

German jobless centre
The government says the system is being abused
A plan to means-test unemployment benefits in Germany has caused a huge row months before the measures are due to come into force.

Particular anger has been generated by plans to cut benefits for families where children under the age of 15 have savings of more than 750 euros (�500).

The German tabloids have been having a field day with the new proposals.

Bild newspaper has a picture montage of Finance Minister Hans Eichel with his arms full of children's toys.

"Hands off the kids' piggy banks" has been the response from both critical media and the opposition.

But the government says the measures are necessary to stop welfare scroungers and reduce Germany's army of nearly 4.5 million unemployed people.

Other unpopular elements of the measures include the 16-page forms which claimants must fill in.

These have been described as hopelessly complicated.

Protests in eastern Germany, where unemployment is highest, have drawn thousands of people.

There are still several months before the new law comes into force, but it has already turned into a public relations disaster for the government.


SEE ALSO:
Exports rise helps German economy
13 May 04  |  Business
German unemployment still rising
05 May 04  |  Business
Country profile: Germany
20 Jul 04  |  Country profiles


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