The Germans will face additional burdens due to the social plans of the new government

The German Economy Institute, I, expected that taxpayers and social security contributions will face additional burdens due to the social policy plans of the future German government, which includes the conservative Christian coalition and the Social Democratic Party.

“The new coalition led by the future advisor to Germany, Fredchrich Mertz, is heading towards major financing difficulties,” said Economy expert in the field of tax and social affairs at the institute.

He added that the contributions of the social security of employees and employers have already increased to 42.3% of income, indicating a study conducted by the IGES Institute, which expected an increase of about 46% in the coming years.

Pimbers attributed these expectations mainly to the high cost of health care, pointing to the increase in spending in this sector more than it was expected in the past, as the legislators obliged health insurance funds to reduce their financial reserves in the wake of the “Corona” pandemic in order to stabilize the rate of contributions, explaining that there are now no precautions that would reduce the continuous increase in the rate of subscriptions.

According to Pimberz, the Christian alliance and the Social Democratic Party want to give up the current “basic principle” that states that current retirement pensions will be funded primarily through social security contributions.

In the ruling coalition agreement, the Christian coalition and Socialists promised to maintain the level of pension at 48% until 2031.

Pimberz stated that achieving this goal requires an increasing spending estimated at billions of euros due to the aging of society, noting that the ruling coalition agreement stipulates the provision of these allocations through tax revenues, and said: “I do not want to be the place of the Minister of Finance who will have to make decisions in this regard.”

In addition, the future advisor to Germany, Frederich Mertz, needs a break after negotiations to form a ruler coalition between the Christian coalition and the Social Democratic Party, and the leader of the Christian Democratic Party said in statements to the German newspaper “Bild am Zonage”: “I must take a few days of holidays now, the past months have been very stressful, as the election campaign immediately moved to negotiations The coalition, as well as the reconnaissance that preceded it, and the amendment of the constitution … is time to rest a few days.

Meansz is still some time before he started his new work as expected. Before the election of the adviser to the Federal Parliament “Bondstag”, the Christian Democratic Party and the Social Democratic Party must obtain internal approval of the ruling coalition agreement.

The Christian Democratic Party is scheduled to hold a small party conference for this purpose, and the Social Democratic Party will hold a survey of its members starting tomorrow, Tuesday, which is expected to continue for two weeks, and the Bavarian Christian Social Party has already agreed to the agreement.