Hartz IV

Hartz IV was selected by the Gesellschaft für deutsche Sprache as the “Wort des Jahres” (Word of the Year) in 2004.

Hartz IV is the name given to the financial support for the long-term unemployed.  The term derives from the name of the person who led the commission to reform, amongst other things, unemployment benefits.

The length of time that someone is unemployed before they stop receiving normal unemployment benefit (Arbeitslosengeld) and receive Hartz IV instead depends on a number of factors such as their age and the length of time that they have paid unemployment insurance (Arbeitslosenversicherung).

The amount of support that someone receives depends on factors such as the size of the flat that is considered to be large enough for them, any savings they may have, how many people are dependent on their income, etc.

For example, the allowance for food is set at 4EUR per person per day, which led to the publication of a so-called “Hartz IV menu” earlier this year.

To hear a simple explanation and a short discussion in German, listen to the podcast:

(Press the “play” button to listen to the podcast)

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Politics in Hessen

Whilst most of the World is watching what’s going on in the U.S.A. today, one part of Germany is still trying to cope with the results of an election held months ago.  9 Months to be exact.

Since January, no single political party and not even a coalition has had a majority in the local parliament in Hessen.  This has meant that the previous Ministerpräsident has simply stayed in office whilst the parties try to find a way to form a government.

Last week the SPD thought that they had managed it.  Their candidate, Andrea Ypsilanti, was to be voted in to form a minority coalition government between the SPD and the Green party, with support from Die Linke.  This was controversial from the outset as during the election campaign Frau Ypsilanti had said that she would not work together with Die Linke party.

Then, yesterday, it all went wrong.  Previously one of the SPD MPs had said that she would not be voting in favour of Frau Ypsilanti, yesterday there were suddenly three more!  The majority was no longer possible – even with the cross-party support, and so the vote was not held.

Instead, most of the parties have told the press that they want to have new elections.  They may even call for them in the next sitting of parliament, meaning that the elections would be held in January.

And that’s something that many politicians want to avoid, as it would mean campaigning through the Christmas and New Year periods, when people are generally less interested in politics.

But that doesn’t mean that it won’t happen.  So here are my predictions for the forthcoming election campaign:

– the election will take place on the earliest possible date, ie. 18th January

– the parties will be campaigning at the Christmas markets, no doubt giving out free Glühwein and Stollen, leading to a number of TV reports along the lines of “the economy is bad enough, but the vendors at the Christmas markets are doing even worse than expected due the amount of free Glühwein being given away”

– the SPD and the Green party will lose voters, and Die Linke will have an even stronger roll to place in the next parliament, although the CDU and FDP will have enough gains to form a coalition.

What do you think?

Do biofuels make food more expensive? My dealer says: no!

There has been a lot of dicussion in the media recently about biofuels.  Many people, even U.N. officials, claim that producing biofuels is pushing up the cost of producing food and thus making it more difficult to fund projects in third-world countries.

The issue is so important, that my car dealer has sent out a newsletter to inform his bio-ethanol customers how he sees the situation.

He agrees that the price of basic foodstuffs has risen, but points out that the price of grain on the world markets is at the same level as it was in 1980.

The reason for this is apparently that during the 1990s the EU and the USA there was an overproduction of grain which, coupled with subsidies, led to the price dropping so much that it often cost more to transport a sack of grain that the contents of the sack itself were worth.

I remember at the end of the 1990s being involved in projects campaigning for the “fair pricing” of goods from third-world countries.  Farmers in those countries should have a fair chance to sell their produce on the world markets, but were being forced to sell at artificially low prices due to the subsidies of the wealthier countries.

The rising food prices are down to these policies, and not due to biofuel production, he claims.  Indeed, he continues by writing that less than 1% of the world biomass production goes towards making biofuels.  It is unlikely that such a small percentage could have such a large effect on food prices.

It is also worth noting, that European biofuels are made from sources such as sugar-beet – and mainly from extra-production or as a secondary product.

So I shall carry on filling up my car with bio-ethanol with a clear conscience.

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