BERLIN (MNI) – Germany’s public insurance program for long-term
care of the elderly will face financial problems over time unless
contributions are increased, the Bundesbank warned Monday.
Due to rapidly rising outlays and dampened revenues, the compulsory
insurance program is likely to see a marked decline this year in the E1
billion surplus posted last year, the central bank said in its Monthly
Report.
The balance of the social security system is part of the country’s
total public budget calculation under the EU Stability and Growth Pact.
Due to demographic trends, the revenue base of the program will
deteriorate further, while the number of beneficiaries will rise, the
Bundesbank predicted.
–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com
[TOPICS: M$G$$$,M$X$$$,M$$EC$]
