German Government Spends Millions on Consultants

Following the controversy over last week’s resignation of Germany's labor office chief, Florian Gerster, who was accused of awarding consulting contracts to business friends, a German newspaper report has found the federal government spent €168.8 million ($211.8 million) in the last four years on advisors, consultants and expert commissions. The Financial Times Deutschland and the Berliner Zeitung newspapers reported that Germany's finance and transport ministries sought the most advice, awarding the most expensive and numerous contracts to outside consultants. The opposition described the expenditure as out of proportion and said the ruling coalition was “sinking in advice.” The Finance Ministry defended the spending on consultants as necessary to find ways to structure current reforms in the health sector and labor market.