The aging population is the Achilles heel of the German economy

According to the report of the international group Tasnim news agency, newspaper ” Passer Neue Perse wrote in an article: Is Germany well prepared for its increasingly aging population?

The results of a report show that this country is not economically ready for the aging crisis.

According to experts, without political countermeasures, Germany’s public property will go out of control in the long run. According to the current sustainability report of the Ministry of Finance, which was provided to the German news agency, Germany is financially less prepared for the aging of the society. In the German Ministry of Finance, this issue is seen as a call for extensive structural reforms.

This sustainability report is considered as an early warning system for government finances. to be It shows what implications an aging society has on government finances, and the report leaves out other burdens such as climate change and possible future crises. This report is prepared by the Ministry of Finance once in each legislative period based on the opinion of foreign scientists. The model’s calculations are purely hypothetical and assume that policy will not change.

This new report is due to be presented to Cabinet on March 20. This report refers to the significantly aging population in the country. Today, one in five people in Germany is over 66 years old, and by 2070, almost one in three people will be in this situation.

Accordingly, this This leaves the government with significant financial problems: as fewer citizens work, less taxes are collected. The same goes for Social Security premiums. However, at the same time more citizens benefit from benefits, for example pension insurance and nursing care. According to the report, population-related spending, for example on pensions, health, care and family, could increase from the current 27.3% of economic output to 30.8% in the best-case scenario – in the worst-case scenario it could even reach 36.1%. .

In this report, the “sustainability gap” determined for 2070 is 1.6 percent of economic output in the favorable assumptions and 4.7 percent in the pessimistic scenario. According to the current GDP, the government would have to spend between 66 and 194 billion euros less or earn more.

The report states: If the debt brake plan is not followed, the debt ratio can increase to 345% of GDP in the worst scenario and 140% in the best scenario by 2070.

Germany’s Federal Finance Minister Christian Lindner recently also advocated thinking about longer working lives to improve this situation. In addition, according to him, the population problem should be reduced through the migration of skilled workers.

Lindner also focuses on better economic growth. In this situation, he has announced an urgent program in which “economic transformation” should be started and the positioning factors of the German economy should be improved.

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