The German cabinet today approved a 15-month extension of its 'Kurzarbeit', or short-time work programme, a scheme credited with keeping a lid on unemployment in Europe's biggest economy.
The deadline for firms to apply for the scheme will be extended until March 31, 2012, Labour Minister Ursula von der Leyen said. Previously it had been due to expire at the end of 2010.
The programme allows firms hit by the global slowdown to slash their overheads by cutting workers' hours. Government money means that employees still get paid most of their salaries for a set period.
More than a million workers have been covered by the scheme, costing German taxpayers some €5 last year and a projected €3 billion in 2010.
