Policy Article

Social security slides into deficit (original publication in German)

Kiel Policy Briefs, 77

Based on his analysis of the financial situation of the social security system in Germany, the Kiel economist Alfred Boss expects a deficit in 2015. The finances of Germany’s social insurance deteriorated markedly already in 2013. The federal government cut the transfers to the social security system drastically, at the same time the rate of contributions to social security was reduced. As of July 2014, additional expenditures for pensioners will become effective. Against this backdrop, in 2014 the surplus of social insurance will decline strongly despite of a favourable economic development and in 2015 the social insurance will operate in the red.

Author

Alfred Boss