Debate on employee profit shares – stock options or Germany Fund?
Although the concept of retained wages (investment wages) has been widely practiced among German companies, the government now wants to give it a further boost. The two blueprints presented by the CDU/CSU and the SPD differ in terms of the potential beneficiaries, tax treatment and capital guarantees. The most likely compromise would broaden the range of beneficiaries in line with the CDU concept, while establishing a Germany Fund along the lines of the SPD concept. The effect on savings appears balanced; new savings schemes tend to alter savings behaviour rather than boost the savings rate.
Asset conclusions: a boost for wage retention will increase awareness of alternative investment options for a significant part of the population. Positive on wage restraint and funding for small / medium sized firms although the initial effect might be rather modest.
© Graham Bishop
Documents associated with this article
|
|
EZA802.pdf
|
Key
Hover over the blue highlighted
text to view the acronym meaning
Hover
over these icons for more information
Comments:
No Comments for this Article