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Germany Social Protection System Chelsea Ralston Thursday, November 27th QuickTime™ and a decompressor are needed to see this picture. History • World’s 3rd largest economy, 5th largest PPP (Purchasing Power Parity), and the largest economy in Europe. • Strong advocate for closer political and economic integration of the EU. • Operates with the euro, monetary policy is set by the central bank in Frankfurt. • In 2003, the government started to gradually deregulate the labor market to tackle high unemployment levels. History cont. • To conserve competitiveness of workers, the unions have abandoned higher wage demands. • The third largest agriculture producer in the EU: potatoes, wheat, barley, and various types of fruit. • A large supply of coal and natural gas but has reduced its mining and production because of adopting environmental protection measures. • Big emphasis has been placed on renewable energy sources, such as, solar, wind, biomass, hydro, and geothermal. GDP per capita 2002 2003 2004 2005 2006 2007 2008 115.1 116.1 116.3 114.6 113.6 112.8 111.4 151.6 153.6 154.7 157.7 156.6 154.6 150.4 100.0 100.0 100.0 100.0 100.0 100.0 100.0 2004 2005 2006 2007 2008 Germany USA EU Total GDP 2002 2003 Germany 23600 24200 25200 25800 26900 28100 28800 31000 31800 33500 35500 37000 38500 38900 20500 20700 21600 22500 23600 24900 25900 USA EU Source:http://epp.eurostat.ec.europa.eu/portal/page?_pageid=1996,45323734&_dad=portal&_schema=PO RTAL&screen=welcomeref&open=/t_na/t_nama/t_nama_gdp&language=en&product=REF_TB_national_a ccounts&root=REF_TB_national_accounts&scrollto=0 Total General Government Expenditure (as a % of GDP) 2001 2002 2003 2004 2005 2006 2007 47.6 48.1 48.5 47.1 46.8 45.3 43.8 48.0 47.4 48.3 47.7 48.2 48.8 48.2 46.3 46.7 47.3 46.9 47.0 46.4 45.8 Germany Italy EU Source:http://epp.eurostat.ec.europa.eu/portal/page?_pageid=1996,39140985&_dad=portal&_schem a=PORTAL&screen=detailref&language=en&product=REF_TB_government_statistics&root=REF_TB _government_statistics/t_gov/t_gov_a/tec00023 Germany’s Social Protection • Social Protection: social benefits that are paid by the government to households intended to relieve them from the financial burden of a number of risks or needs. • Such as: sickness, disability, occupational accident or disease, old age, maternity, unemployment, housing, education. Source:http://epp.eurostat.ec.europa.eu/portal/page?_pageid=1996,39140985&_dad=portal&_schema=PO RTAL&screen=detailref&language=en&product=REF_TB_government_statistics&root=REF_TB_governmen t_statistics/t_gov/t_gov_a/tec00026 Social Protection Expenditure (as a percentage of total spending) 2002 2003 2004 2005 2006 2007 19.5 19.8 19.4 19.2 18.4 17.3 16.5 16.8 16.9 17.0 17.0 17.3 15.8 16.0 15.9 15.7 15.4 15.1 Germany Italy EU Source:http://epp.eurostat.ec.europa.eu/portal/page?_pageid=1996,45323734&_dad=portal&_sc hema=PORTAL&screen=welcomeref&open=/t_gov/t_gov_a&language=en&product=REF_TB_g overnment_statistics&root=REF_TB_government_statistics&scrollto=0 Employment Rate 2001 2002 2003 2004 2005 2006 2007 65.8 65.4 65.0 65.0 66.0 67.5 69.4 74.0 73.1 71.9 71.2 71.2 71.5 71.7 62.6 62.4 62.6 63.0 63.6 64.5 65.4 Germany US EU The employment rate is calculated by dividing the number of persons aged 15 to 64 in employment by the total populated of the same age group. Source:http://epp.eurostat.ec.europa.eu/portal/page?_pageid=1996,39140985&_dad=portal&_schema= PORTAL&screen=detailref&language=en&product=REF_TB_labour_market&root=REF_TB_labour_ma rket/t_labour/t_employ/t_lfsi/t_lfsi_emp/tsiem010 Unemployment Rate (ages 25-74) 2001 2002 2003 2004 2005 2006 2007 7.6 8.3 9.2 9.5 10.2 9.4 8.0 7.4 7.0 6.8 6.5 6.3 5.5 4.9 7.2 7.6 7.7 7.7 7.6 7.0 6.1 Germany Italy EU The unemployment rate represents unemployed persons as a percentage of the labor force. To be considered a part of the labor force, one has to be actively seeking employment. Source:http://epp.eurostat.ec.europa.eu/portal/page?_pageid=1996,39140985&_dad=portal&_schema=PO RTAL&screen=detailref&language=en&product=REF_TB_labour_market&root=REF_TB_labour_market/t_l abour/t_employ/t_lfsi/t_une/tsdec460 Long term unemployment rate 2001 2002 2003 2004 2005 2006 2007 3.8 4.0 4.6 5.5 5.7 5.5 4.7 0.3 0.5 0.7 0.7 0.6 0.5 0.5 3.9 4.0 4.1 4.2 4.1 3.7 3.1 Germany US EU The long-term unemployment (12 months or more) are those of at least 15 years old, not living in collective households, who are without work despite searching. Source:http://epp.eurostat.ec.europa.eu/portal/page?_pageid=1996,39140985&_dad=portal&_schema=P ORTAL&screen=detailref&language=en&product=REF_TB_labour_market&root=REF_TB_labour_market/ t_labour/t_employ/t_lfsi/t_une/tsisc070 Taxation as Percentage of GDP Germany Italy 2001 2002 2003 2004 2005 2006 2007 10.9 10.6 10.4 10.0 10.1 10.8 11.2 14.7 13.9 13.4 13.3 13.3 14.4 15.2 13.3 12.7 12.4 12.3 12.7 13.2 13.4 EU Tax revenue is collected by the central government (Bund), the state (Laender), and local governments. The main two taxes are the value added tax (VAT) and an income tax. Tax revenue is distributed proportionately using a formula set by the constitution. Source:http://epp.eurostat.ec.europa.eu/portal/page?_pageid=1996,39140985&_dad=portal&_schema=PORT AL&screen=detailref&language=en&product=REF_TB_government_statistics&root=REF_TB_government_sta tistics/t_gov/t_gov_a/tec00018 • Gini Index- measures the degree of inequality in the distribution of family income in a country. 1997 25 27 1998 24 27 26 1999 26 29 26 29 2000 24 30 25 25 21 36 24 28 25 33 23 30 29 2001 24 28 26 20 38 22 29 25 35 21 37 22 28 25 35 22 37 24 29 25 34 33 31 30 34 31 30 25 26 32 30 31 31 27 26 25 36 37 28 26 28 36 29 35 22 34 24 22 33 23 22 32 24 33 24 30 32 32 32 31 26 30 25 30 36 22 35 24 27 25 33 23 29 29 32 2002 26 35 26 27 24 27 26 30 37 30 2003 27 28 24 29 27 2004 26 26 26 25 34 26 27 24 37 25 28 35 27 31 33 28 26 27 27 30 30 22 31 23 46 35 22 31 45 34 30 29 32 33 38 31 2005 26 28 29 26 24 34 26 28 28 33 28 32 33 36 36 26 28 27 36 41 31 26 31 23 32 23 30 30 30 31 Souce:http://www.eurofound.europa.eu/areas/qualityoflife/eurlife/index.php?template=3&radioindic=158&idDomain=3 Countries AT BE BG HR CY CZ DK EE FI FR DE EL HU IE IT LV LT LU MT NL PL PT RO SK SI ES SE TR UK EU-15 EU-25