Independent Perspective News - European crisis: a harsh reduction in pensions

Social democrat Gerhard Schroeder's government has just lost some 20 million potential voters. All of the sudden, while everybody was still talking about the cut in the unemployment benefits, the German Head of State announced a decreed reduction of retirement pensions from 2004. The measure will affect, precisely, 20 million senior citizens.

Germany is not the only example of the lack of care of old people. The phenomenon is spreading all over Europe, and its origins are diverse: on the one hand, the absence of enough active workers due to the low birth rates; on the other, the crisis in different states caused by the problematic European economy over the last few years. Thus, the problem that has violently hit Germany also affects France, Italy and Austria, among other nations.

In Germany, since next year, and due to the appalling situation of the public pension funds, pensions will be suspended by governmental decision, but that's not all: seniors will have to pay themselves for the compulsory insurance against disability.

This is the first time in the history of the Federal Republic of Germany that retirement pensions will decrease, instead of increase.

(...)

At first sight, the cut is fairly small: 20 euros from an average pension of 1.000 euros. But that has to be added to the cost of other reforms just adopted by the government, such as that of public health, which forces the patient to pay 10 euros per medical visit, and also the rise in the percentage they pay on the price of medicines.

(...)

"This is a South Americanization of the pension system", said yesterday a horrified liberal leader Guido Westerwelle. "What is this? When there's money they pay, when there isn't they don't?" he claimed. The whole opposition was outraged when the cut to the pension was made known, although up to now no one has put forward an alternative to replace the eight thousand million euros the pension system is
missing.