In the Federal Republic , democracy and the state welfare system are closely interlinked. The fundamental principles of the welfare state are solidarity, on the one hand, and personal responsibility, on the other. In order to realize these principles the state has created a broad-based network of social services. The provisions of the welfare state complement the state's aim to safeguard its citizens' freedom by obligating the state to make a functioning social security system available. As well as the five branches of social insurance financed by both employees and employers, (pension, health, long-term care, accident and unemployment insurance) the social network also comprises services financed through taxation such as family benefits and social assistance.
A policy of state welfare really began with the 1883 Health Insurance Act, the 1884 Accident Insurance Act and the 1889 Invalidity and Pension Insurance Act. Mandatory unemployment insurance taken out by employees against unemployment was introduced in 1927. At the time, this legislation extended to only one fifth of all persons in gainful employment and one tenth of the population, whereas today some 90 percent of the population benefits from the provision of mandatory social security.
In addition to the reforms in the fields of business, education and training, the labor market, the tax system and the promotion of family values, the acts that make up the 2010 reform agenda also mark the beginnings of a transformation of the welfare state. Despite demographic trends and the in general higher life expectancy, the plan foresees keeping contributions towards financing the social security system and ancillary labor costs at todays levels.
Economy
The countryside
The federal states
Structure of the state
The people
Society
The Basic Law
Social security
Education
Climate |
