Policy Article

Financial situation of the social security system: Federal Government cuts subsidies – burden of contributions drops a little

Kiel Policy Briefs, 56

The Kiel economist Alfred Boss shows that the financial situation of the social security system in Germany has improved due to the strong upswing and the increase of the rate of contributions in the beginning of 2011. Facing favourable perspectives for 2012 and 2013, the federal government reduced the transfers to social insurance by about €5 bill. As a consequence, the overall reduction of the rate of contributions to social security will decline but remain high.

Author

Alfred Boss