Well, it is already some time ago that newspapers were full of it, so in case some people have forgotten by now:
Pensions will freeze
The sub-title read: The only thing that prevents the government from reducing the employee pensions is the pension law introduced under the “Great Coalition”.
My first question is:
Is that also true for the civil servants’ pensions?
Well, but I will let that question rest for the time being.
The reason for the freeze is that the incomes statistically decrease in Germany. Mind you, this is regardless of tariff increases, i.e. those of us who are organized in tariff regulated sectors get no less than before. There is only one conclusion you can draw from that:
There is less and less influence through the tariff parties and the German tariff system. In fact, the German tariff system is in the process of disappearing. This is probably a reasonable development. The system that helped us through times of the economical miracle is no longer seasonable.
However, the underlying statistics only reflect the nominal wages. Some important quality parameters are also spiralling towards the bottom:
- New contracts contain less optional social benefits or bonuses.
- In former times, unlimited employment was the rule, now the number of temporary employment contracts increases considerably (currently, we probably have a ratio of around 50% for new contracts).
- There is a decrease in the number of paid days of leave (in new contracts, it is sometimes 24 days or less per year, whereas it used to be 30 as a rule, and sometimes even more).
- The weekly working hours increase.
- Rules such as regarding an overtime pool get more restricted.
The real decrease in incomes is even more than the nominal one, because we are in a phase of inflation. It feels a lot higher than the official rate defined by the Federal Statistical Office. Wherever I look all is see are (drastically) higher prices: rents and even more additional property expenses, public transport (train and the “MVV”), entrance fees for the public swimming pool and the beer in the pub around the corner. I also have to rub my eyes whenever I see what a pair of good shoes or a suit costs.
As a consequence, many young couples can only think about starting a family if they have property, i.e. if they do not have to pay rent or have investment income or else are part of the “inheritance generation” supported by their parents.
I do not appreciate this. It seems like the reduction of our living standards is under way, and that means a further polarization of our society. And looking at the federal budget deficit, I cannot see the slightest chance of improvement for the future.
RMD
(Translated by EG)
P.S.
I guess our only hope is that we have quite some reserves in prosperity, both individually and collectively, that we can fall back on. Of course, being as prejudiced as always, the first thing that comes to my mind are cars (-;)).
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