To increase the birth rate in Germany, one of the lowest in Europe with 1,34 children per woman, the government of Angela Merkel agreed, in the night of 1 to 2 May 2006, and after weeks of controversies, on the introduction of a "parental allowance" (Elterngeld) as of 1 January 2007. (Ref. 06430)
As of next January, a mother or a father who chooses to remain at home to take care of his/her child will be entitled to 67% of his last take-home pay for twelve months as from the birth of the child, up to 1800 euros maximum. If the partner, often the father, also decides to take a parental pause, the device will be extended for two months. Inspired by the Scandinavian models, this device should cost 3,8 billion euros to the federal budget.
During a joint press conference on 2 May in...
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