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Social Assistance Rate
Social Assistance Rate
The Situation of today – Reforms Gerhard Schr
The Situation of today – Reforms Gerhard Schr
The German Social Welfare System
The German Social Welfare System
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The German Social Welfare System

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1The German Social Welfare System. 14Mitbestimmungsgesetz 1951
2Introduction. The social welfare Betriebsverfassungsgesetz 1952 Monetary
system of a state … is a key factor for policy of the Bundesbank (Federal Bank of
the economy. shapes the social structure. Germany) Extensive social security scheme.
prevents poverty. Euro 200: France, Euro 200: France, Germany and Modern
Germany and Modern Europe. Europe.
3Introduction. Role of Social Policy in 15Post War Germany - The Economic
the EU Concepts to describe different Miracle. 1957 Pension reform
welfare states Historic development of the (Rentenreformgesetz) Pay-as-you-go
German welfare system and its basic principle Pension adjustments linked to
characteristics Situation of today. Euro gross wages Characteristics of the welfare
200: France, Germany and Modern Europe. system: Based on traditional role models:
4The EU – Social Agenda. Lisbon Agenda Women as mothers and carers, male
2000 / Review 2005: Focus on Growth and breadwinner, “family wage” / splitting of
Jobs 20 million jobs, 70% employment rate income full-employment, standard
by 2010 Social Agenda: European labour employments Core aim: securing the
market enable workers to take pension and achieved standard of living of families.
social security entitlements with them Euro 200: France, Germany and Modern
support the Member States in reforming Europe.
pensions and health care. Euro 200: 16Growth of the government sector from
France, Germany and Modern Europe. the 60s to mid 70s Grand Coalition
5The EU - The Charter of Fundamental (1966-1969), SPD and FDP (1969–1982). 1966
Rights (2000). Article 33 Family and / 67 Recession: government investment
professional life […] To reconcile family programme (7.5 billion DM) 1967 Stability
and professional life, everyone shall have Law (Law for the Promotion of Economic
the right to protection from dismissal for Stability and Growth) Public sector grew
a reason connected with maternity and the about 1.3 million employees between
right to paid maternity leave and to 1960-1973 (~60%) 1968 Average unemployment
parental leave following the birth or benefit: 68% of prior net wage 1972
adoption of a child. Euro 200: France, Pension reform law: age of entitlement 63.
Germany and Modern Europe. Euro 200: France, Germany and Modern
6The EU - The Charter of Fundamental Europe.
Rights (2000). Article 34 Social security 17The Social Expenditure Rate
and social assistance The Union recognises Sozialleistungsquote. Source: Wewer, G.
and respects the entitlement to social (1998), Bilanz der ?ra Kohl, p. 348,
security benefits and social services Statistisches Bundesamt.
providing protection in cases such as 18Rolling back the welfare state in the
maternity, illness, industrial accidents, 80s? Helmut Kohl (1982 – 1998), CDU. 1992
dependency or old age, and in the case of Pension reform: pension adjustments linked
loss of employment, in accordance with the to the net wage, age of entitlement 65
rules laid down by Community law and 1992 Social expenditure rate: ~70% in the
national laws and practices. Euro 200: former GDR 1995 Long-term / nursery care
France, Germany and Modern Europe. insurance, pay-as-you-go
7Three Types of Welfare States Liberal (Pflegeversicherung).
Social-democratic Conservative 19? The Safety Net. Social security
(Esping-Andersen (1990): The Three Worlds Pension Unemployment Health care Long-term
of Welfare Capitalism). Describing Welfare / nursery care Insurance-based
States. Euro 200: France, Germany and Wage-related benefits Financed by
Modern Europe. contributions “Conservative”. Social
8Liberal Welfare States. Market-based assistance Alleviation of the poor
social security schemes Private schemes Means-tested Fixed levels of benefits Tax
Means-testing Limited benefits “[…] a financed “Liberal”.
blend of a relative equality of poverty 20Social Assistance Rate. Social
among state-welfare recipients, market assistance rate: claimants of social
differentiated welfare among the assistance not living in care institutions
majorities.” (Esping-Andersen, p.27) / population Before 1991: former FRG
Examples: USA, UK. Euro 200: France, Source: Stastisches Bundesamt (2003)
Germany and Modern Europe. Sozialhilfe in Deutschland,
9Social-democratic Welfare States. http://www.destatis.de/presse/deutsch/pk/2
Universalism and equality Redistribution 03/sozialhilfe_2003i.pdf.
of wealth High benefits State organized 21The Situation of today – Reforms
childcare Encourage women to work Gerhard Schr?der (1998-2005), SPD. „In an
Examples: Scandinavian countries. Euro ageing society it is fair to expect people
200: France, Germany and Modern Europe. to take more responsibility for
10Conservative Welfare States. Maintain themselves, especially concerning health
the differences between social classes No care and pensions. It is fair not to
redistribution of wealth Traditional role cripple citizens‘ willingnes to work by
models are protected Example: Germany. excessive non-labour costs“ (Agenda
Euro 200: France, Germany and Modern 2010,p.4) 2002: Gesetz zur Reform der
Europe. Rentenversicherung („Riester“-pension):
11German Social Welfare System. Promotion of capital-covered private
Unemployment insurance Health care pensions, Times of child-raising taken
insurance Pension insurance Long-term care into account no adjustments of pensions in
insurance Social assistance. Euro 200: 2004 2004: Reform of Health Care:
France, Germany and Modern Europe. quarterly fee of 10 €.
12Bismarck Area and Weimar Republic. 22“Harz”-Laws. Hartz I (2001): Personnel
1883 Workers’ health insurance 1884 Service Agencies Job-AQTIV Laws Hartz II
Industrial accident insurance 1889 (2003): Jobcenters “Ich-AGs” / “Me-plcs”:
Invalidity and old-age insurance 1911 support for one-person start-ups Hartz III
Reich insurance system extended to civil (2004): Restructuring and renaming of the
servants / white-collar workers 1927 Bundesanstalt f?r Arbeit (= Bundesagentur
Unemployment insurance Characteristics: f?r Arbeit, Federal employment agency)
Contribution financed, not tax financed, Hartz IV (2005): Means-tested Unemployment
no pay-as-you-go Contributions shared: 50% Benefit II.
paid by employer, 50% by employee Widely 23The Social-insurance Scheme. Pension.
supported by middle class. Euro 200: Unemployment. Unemployment. Health.
France, Germany and Modern Europe. Long-term care. Contrib. 19.5 %. 6.5%.
13Post war Germany Konrad Adenauer 6.5%. ~14.3%. 1.7%. Unemployment benefit.
(1949-1963 ), CDU Ludwig Erhardt (1963 – Unemployment assistance (Unemployment
1966), CDU. The Social market economy benefit (II) 2005). Compulsory if wage
(Alfred M?ller Armack) “A system which < 3.862,50 € / month. When. > 65
allowed business and finance to operate years. after 12 months of contributions,
under the conditions of free market for 12 months. after 12 months of
trading yet which worked within the unemployment, all jobless persons able to
legislative framework of industrial work. How much? ~70 % of final net pay.
democracy at plant, company and industry ~67 % of final net pay (one child), for 12
level and within a statutory social months. 53% of final net wage (345 € West
security scheme seemed to enjoy the best / 331 € East, plus rent). everybody gets
of both worlds.” (Nigel Reeves, 1995, the same. Level I: 345 € Level III: 1.432
213). Euro 200: France, Germany and Modern €. wage-related. wage-related.
Europe. wage-related (fixed level, means-tested).
14The Social Market Economy Die soziale “principle of solidarity”. care at home
Marktwirtschaft. Free market trading The promoted.
industrial harmony Laws of Codetermination 24
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