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Business leaders reject €1,000 worker bonus amid rising oil costs

A government plan to ease financial strain backfires as small businesses call it unrealistic. Will tax cuts replace this controversial bonus?

The image shows a poster with the words "Trickle-Down Economics Doesn't Work" written in bold,...
The image shows a poster with the words "Trickle-Down Economics Doesn't Work" written in bold, black lettering against a white background. The poster is framed by a thin black border, and the text is accompanied by a quote from President Biden, emphasizing the importance of the message.

Business leaders reject €1,000 worker bonus amid rising oil costs

"The vast majority of businesses simply won't be able to pay it—they can't afford it in the current economic climate," said Uwe Nostitz, president of the Saxon Crafts Association. He urged the federal government to abandon plans for the relief bonus, arguing that trades and small businesses instead need lasting and substantial tax cuts, lower social contributions, and less red tape.

The government had proposed the one-off payment in response to soaring oil prices driven by the Iran conflict. Under the plan, employers would have the option—though not the obligation—to pay workers a tax- and contribution-free bonus of up to €1,000 this year.

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