Germany: the record increase of sickness insurance raises controversy

During a new summit meeting after several months of break, the parties of the Grand Coalition agreed, on October 5, 2008, on a major increase of sickness insurance which will amount, from January 1, 2009 on, to 15.5% of gross earnings, that is a 0.6 increase. In exchange, unemployment insurance will decrease by 0.5 points, reaching 2.8% of gross earnings. The trade unions and the opposition immediately criticized these decisions. (Ref. 080754)
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They are part of the preparations for the enforcement, on January 1, 2009, of the much disputed “health fund”, keystone of the German health reform (see our dispatch No. 070149 ). “It is an issue which has no impact” for social insurances said Peter Ramsauer, leader of the Parliamentary group of the CSU – the Bavarian branch of the Christian Democratic Party CDU. Besides, the conservative party (CDU/CSU) and the social democratic party (SPD) agreed on a new increase (higher than anticipated) fo

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