Have you read today’s German version of Financial Times? I did. Not that I can read German, but you don’t have to – just copy/paste the text of this article to Google Translate’s left box. It’s smart enough to recognize that it’s in German. Pick your language in the “To:” dropdown and enjoy the news.
From now on, if you are software developer, your perspective employer doesn’t have to pay you 66 thousand Euros a year, but “only” 45 thousand. Given their tax laws, it’ll translate into two thousand euros a month after taxes. Who can Germany attract with this amount? India, Pakistan, Bangladesh, and China. Russia and Ukraine won’t bother. They can take home this much cash either officially after paying from 5 to 13% tax, or using what they call grey salary, where part of the pay is given in an envelope stuffed with long and green bills.
Some people will get excited by the fact that you can enter the country and spend 6 months there just looking for a job, but again, this won’t attract software developers from the Eastern Europe. Overall, Germany tries to take a step in the right direction, but five years down the road the may not be happy with the results.