Straight talker: German Finance Minister Peer Steinbrück. Reuters
The law, passed by the Bundestag lower house of parliament in June, was devised by SPD Labor Minister Olaf Scholz, and enshrines a long-term guarantee that pensions won't be cut, regardless of how badly the economy develops.
"I have big doubts whether that's the right signal for following generations," straight-talking Steinbrück, who recently accused Britain of obstructing regulatory reforms of financial markets, told the Frankfurter Rundschau newspaper. He said today's pensioners were better off than ever before and that pensions were rising faster than they had been for years while people in work were afraid of losing their jobs in the economic crisis.
"The 25 to 35-year-olds who want to have children are at a disadvantage," said Steinbrück. "We have to do more to help this generation."
From July 1, the state pension was increased by 2.41 percent in western Germany and 3.38 percent in the east. Cuts were ruled out for the years to come, even if gross wage levels -- to which pensions are linked -- decline. Scholz said the law was aimed at reassuring pensioners worried by "clever professors and clever institutes" who keep on giving gloomy predictions for pension levels in future. "The aim is to use the clear language of the law to put a stop to those panic-mongers who spread uncertainty among millions of pensioners," said Scholz. [rc]
David Crossland
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© SPIEGEL ONLINE 2009
July 13, 2009
GERMANY: German Pension Guarantee Is 'Bad Law'
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BERLIN, Germany / Der Spiegel / The World From Berlin / July 13, 2009
German Finance Minister Peer Steinbrück was right to criticize a recent law guaranteeing pension levels in the long term, media commentators write. The government passed the law because it wanted to pander to 20 million elderly voters ahead of the September general election.
German Finance Minister Peer Steinbrück, never one to mince his words, has angered his own party, the Social Democrats (SPD), by criticizing recent legislation guaranteeing that pensions won't be cut. Now his party comrades are urging him to take a long vacation to avoid damaging the party's already slender chances of winning the Sept. 27 general election.
Straight talker: German Finance Minister Peer Steinbrück. Reuters
The law, passed by the Bundestag lower house of parliament in June, was devised by SPD Labor Minister Olaf Scholz, and enshrines a long-term guarantee that pensions won't be cut, regardless of how badly the economy develops.
"I have big doubts whether that's the right signal for following generations," straight-talking Steinbrück, who recently accused Britain of obstructing regulatory reforms of financial markets, told the Frankfurter Rundschau newspaper. He said today's pensioners were better off than ever before and that pensions were rising faster than they had been for years while people in work were afraid of losing their jobs in the economic crisis.
"The 25 to 35-year-olds who want to have children are at a disadvantage," said Steinbrück. "We have to do more to help this generation."
From July 1, the state pension was increased by 2.41 percent in western Germany and 3.38 percent in the east. Cuts were ruled out for the years to come, even if gross wage levels -- to which pensions are linked -- decline. Scholz said the law was aimed at reassuring pensioners worried by "clever professors and clever institutes" who keep on giving gloomy predictions for pension levels in future. "The aim is to use the clear language of the law to put a stop to those panic-mongers who spread uncertainty among millions of pensioners," said Scholz. [rc]
David Crossland
Interesting? Click here for more.
© SPIEGEL ONLINE 2009
Straight talker: German Finance Minister Peer Steinbrück. Reuters
The law, passed by the Bundestag lower house of parliament in June, was devised by SPD Labor Minister Olaf Scholz, and enshrines a long-term guarantee that pensions won't be cut, regardless of how badly the economy develops.
"I have big doubts whether that's the right signal for following generations," straight-talking Steinbrück, who recently accused Britain of obstructing regulatory reforms of financial markets, told the Frankfurter Rundschau newspaper. He said today's pensioners were better off than ever before and that pensions were rising faster than they had been for years while people in work were afraid of losing their jobs in the economic crisis.
"The 25 to 35-year-olds who want to have children are at a disadvantage," said Steinbrück. "We have to do more to help this generation."
From July 1, the state pension was increased by 2.41 percent in western Germany and 3.38 percent in the east. Cuts were ruled out for the years to come, even if gross wage levels -- to which pensions are linked -- decline. Scholz said the law was aimed at reassuring pensioners worried by "clever professors and clever institutes" who keep on giving gloomy predictions for pension levels in future. "The aim is to use the clear language of the law to put a stop to those panic-mongers who spread uncertainty among millions of pensioners," said Scholz. [rc]
David Crossland
Interesting? Click here for more.
© SPIEGEL ONLINE 2009
