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Germany Social Protection System Chelsea Ralston Thursday, November 27th.

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Presentation on theme: "Germany Social Protection System Chelsea Ralston Thursday, November 27th."— Presentation transcript:

1 Germany Social Protection System Chelsea Ralston Thursday, November 27th


3 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.

4 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.

5 GDP per capita 2002200320042005200620072008 115.1116.1116.3114.6113.6112.8111.4 151.6153.6154.7157.7156.6154.6150.4 100.0 Germany USA EU 2002200320042005200620072008 23600242002520025800269002810028800 31000318003350035500370003850038900 20500207002160022500236002490025900 Germany USA EU Total GDP Source:,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

6 Total General Government Expenditure (as a % of GDP) 2001200220032004200520062007 47.648.148.547.146.845.343.8 48.047.448.347.748.248.848.2 46.346.747.346.947.046.445.8 Italy Germany EU Source:,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

7 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:,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

8 Social Protection Expenditure (as a percentage of total spending) 200220032004200520062007 19.519.819.419.218.417.3 16.516.816.917.0 17.3 15.816.015.915.715.415.1 Germany EU Italy Source:,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

9 Employment Rate 2001200220032004200520062007 65.865.465.0 66.067.569.4 71.571.7 62.662.462.663.063.664.565.4 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:,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

10 Unemployment Rate (ages 25-74) 2001200220032004200520062007 Germany Italy EU Source:,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 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.

11 Long term unemployment rate 2001200220032004200520062007 0.60.5 Source:,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 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.

12 Taxation as Percentage of GDP 2001200220032004200520062007 10.910.610.410.010.110.811.2 14.713.913.413.3 14.415.2 13.312.712.412.312.713.213.4 Germany EU Italy Source:,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 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.

13 Gini Index- measures the degree of inequality in the distribution of family income in a country.

14 Countries19951996 199719981999200020012002200320042005Countries AT 27262524262424 272626 AT BE 29282727293028 282628 BE BG 26262526262426 BG HR 29 HR CY 29 27 29 CY CZ 24 25 26 CZ DK 22222021222122 252424 DK EE 37383737363535343734 EE FI 22222224242426262526 FI FR 2929292829282727272828 FR DE 29272525252525 28 DE EL 35343535343333 353333 EL HU 23232427 28 HU IE 33333334323029 313232 IE IT 33323131302929 3333 IT LV 31303031 32 36 LV LT 31 36 LT LU 29282526272627 282626 LU MT 30 28 MT NL 292926252625262727 27 NL PL 283030 36 PL PT 37363637363637 3841 PT RO 2829 3030303131 RO SK 26 SK SI 2222 2222 SI ES 3434353433323331313132 ES SE 222423242423 2323 SE TR 4645 TR UK 323230323232313534 UK EU-15 303030 EU-15 EU-25 293031 EU-25 Souce:

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