Agence France Presse

Berlin, January 2:

Protesters were expected to hit the streets in more than 30 German cities tomorrow, two days after a sweeping reform of welfare payments aimed to cut long-term unemployment went into effect. But unfazed by the protests, economy minister Wolfgang Clement told the weekly Bild am Sonntag he was confident “the most comprehensive reform

of the job market in the history of the Federal Republic of Germany will eventually be a success. I will be responsible for its success or failure.” The controversial package of labour market reforms known as Hartz IV will have a wide-reaching impact on the lives of 4.5 million people out of work in what is still Europe’s economic powerhouse.

It is impossible to tell for the moment exactly how many unemployed will lose money under the new system or who will benefit from the changes. But those expected to feel the changes hardest are the long-term jobless and the 2.7 million people who the Federal Labour Agency says have used up their benefits and now receive only minimum welfare payments.

The Agency says less than 10 per cent will lose their welfare payments altogether, a figure the unions reject. They put the figure at 27 per cent and say 48 per cent will have their income reduced.