Hans-Werner Sinn, Pres. of the Ifo IER | January 5, 2009
One of the conditions of Germany's rescue package stating that salaries of top management ought to be limited to €500,000 a year found itself at the origin of several critiques. ++ Contested is the fact that "one cannot give the banks the freedom to decide whether to accept help and at the same time threaten managers with salary cuts." ++ Dropping this restriction ought to be envisaged urgently in order to achieve the needed recapitalization of the banking system as the country revealed to be more affected by the crisis than at first assumed.