German Labour Minister Hubertus Heil says he defends the coalition government's decision to extend a furlough scheme for employees out of work during the coronavirus pandemic, warning of a protracted economic crisis.
"We are dealing with the deepest economic crisis of our generation and it will not be over from January 1," Heil told the Deutschlandfunk radio broadcaster on Wednesday.
Despite forecasts that the German economy is set to recover in the coming year, Heil said short-time work - as the government scheme is known - was a "stable bridge" to protect jobs in the meantime.
Heil's Social Democrats (SPD) and the Christian Democratic Union (CDU) of Chancellor Angela Merkel agreed late on Tuesday to extend the programme, which covers the bulk of workers' wages for companies who have no work for them.
Employers who sign up for the scheme by the end of the year can benefit for a period of 24 months, rather than 12, with the aid to be provided until the end of 2021 at the latest.
After balancing its books for years, the German government said it plans to take on a record 218.5 billion euros (246 billion dollars) in debt this year to shield Europe's largest economy against the fallout of the coronavirus crisis.
Heil noted that, while short-time work would be very costly, mass unemployment would be much more costly to both the economy and society in the long run.
"We in the coalition committee have ensured solid financing," Heil said.
"It is sensible not to save into a crisis," he added.
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