Will social insurance soon return into a deficit? (in German)

In his Kiel Policy Brief the Kiel economist Alfred Boss warns of the return of the deficit in Germany’s social insurance. The financial situation of the social security system in Germany has improved due to the strong upswing. Facing favorable perspectives for 2013 and 2014, the federal government reduced the transfers to social insurance drastically. The rate of contributions to social security was reduced. As a consequence, the surplus will decline despite of a favourable economic development in 2013 and 2014.