German anger at paying for luxury Greek pensions

Bild on the Greek bailout

It is only a matter of days until Germany starts handing out billions in aid to the Greeks, according to Chancellor Angela Merkel.

But for some experts, Greece is just a bottomless pit. And now anger is increasing in Germany, with many asking why they should pay for things like the luxury Greek pension system.

They highlight superior Greek pensions, that German workers will now be paying for –

The fact is that in Greece, the employee’s contribution is only 6.67 per cent of the gross wage compared to 9.95 per cent in Germany. The government contributes a subsidy from tax revenues.

That means that with a broke Athens seeking outside help, Germany and the rest of the EU aid givers must start pouring cash into the bottomless Greek pension pit…

And a handy table that breaks down the differences in detail –

Greece Germany
Years of work to earn full pension: 35 45
Proportion of wages as pension: 80 %* 46 %
Number of pension payments a year: 14 x 12 x
Pension increase 2004: 3 % 0 %
Pension increase 2005: 4 % 0 %
Pension increase 2006**: 4 % 0 %
Minimum payment (Euros): 445 ca. 600
Maximum payment (Euros): 2538 ca. 2100
Minimum pension age for men: 65 65–67
Minimum pension age for women: 60 65–67
Average pension entrance age: 62,4 63,2
* for insurance beginning before 1.1.1993, 70% after 1.1.1993, average earner;
** last available figures; sources: Eurostat, OECD, Dt. Rentenversicherung


From Spiegel – Will the Greek Bailout Destroy the Euro Zone?

The Greek government’s appeal for help is putting Chancellor Angela Merkel under pressure. With Germany required to provide billions over the coming years to pay for the Greek bailout, there are growing calls in the German government for Greece to withdraw from the euro zone.

Update 2

Two German Economists debate the Euro.

Donate to keep Slugger lit!

For over 20 years, Slugger has been an independent place for debate and new ideas. We have published over 40,000 posts and over one and a half million comments on the site. Each month we have over 70,000 readers. All this we have accomplished with only volunteers we have never had any paid staff.

Slugger does not receive any funding, and we respect our readers, so we will never run intrusive ads or sponsored posts. Instead, we are reader-supported. Help us keep Slugger independent by becoming a friend of Slugger.

While we run a tight ship and no one gets paid to write, we need money to help us cover our costs.

If you like what we do, we are asking you to consider giving a monthly donation of any amount, or you can give a one-off donation. Any amount is appreciated.