Ruling party opposes government plan to cut unemployment benefits

The coalition Freedom and Direct Democracy Party (SPD) opposes plans to reduce unemployment benefits approved by the government on Monday. SPD leader Tomio Okamura said his party had not been consulted about the matter in advance and he wants to raise the issue at a meeting of the coalition council.

The government's plan has also drawn criticism from experts. They warn that cutting benefits in the first months of unemployment, as well as lowering the maximum benefit, could prevent jobless people from choosing the best available offer and settle for lower-paid jobs, meaning the state would collect less in taxes and social insurance contributions.

Under the amendment submitted to the Chamber of Deputies, unemployment benefits would fall from the current 80 percent of a person's previous net wage to 65 percent during the first two months. They would remain at 50 percent in the middle of the benefit period, while at the end they would rise from 40 to 45 percent.