European Stars and Stripes (Newspaper) - May 21, 1977, Darmstadt, Hesse                                This time it vanished quite slowly Besl Hows with the amp of tub Tal we Whf a social Security the big squeeze by Craig r. Whitney new York times one of the most critical political and eco nomic issues of the next five years the mounting deficits in Many Western countries social Security systems was apparently no mentioned at All during the recent London economic Summit yet the problems Are becoming increasingly serious in most of Hie countries whose leaders attended. Conflict and uncertainty Over How to Rescue West Germany s Large and expensive social Security system from bankruptcy has shaken Public Confidence in the government of Chancellor Helmut Schmidt. In France mounting debts have made social Security an object of parliamentary debate and in Italy employers Are Balking at having to pay a 35 per cent social Security tax on workers wages. In the United slates the Carter administration has had to Call for $34 billion in payroll lax increases for employers and employees to Rescue the social Security system from. Overwhelming debt by 1982. The causes of the crisis in social Security Are common co All affected countries. Older working people Are retiring earlier living longer and draw ing bigger pensions these Days in West Germany just As in the United states. But High unemployment All Over Western Europe and North America Means that there arc nol enough workers paying Inlo the social Security funds that pay the pen Sions. And because of sharply declining birth rates this problem seems Likely to become permanent in future years even if unemployment is reduced. Ii has become a political problem in Wisl Germany be cause to critics in seems to undermine the whole Reform philosophy of Schmidt s social democratic party. In the economic Boom years the government raised pensions by More than 50 per cent since 1970 but now the Bill has come due. Schmidt returned to Bonn from London to face a grueling two Day parliamentary debate Over his proposals to juggle billions of dollars in social Security taxes and Trust funds around to keep the system solvent this year but even some supporters doubt the solution will hold through 1978. The problem is most acute in Bonn because the West German system is the most ambitious the average retired person gets a pension of nearly $1,500 per year and Many pensioners make a lot More than that. All of it is lax free and even medi Cal care does t Cost retired people insurance premiums. To raise the $18 billion it takes to pay for All this every year the government taxes All salaries at 18 per cent nine per cell paid by employees and nine per cent by pm  is far higher than what most americans pay in social Security taxes now half of 11.7 per cent but on yup to $965.25 with a Matching contribution by the employer. In Bonn. Birgit Rosenberg a Secretary paid $1, 550 Iii social Security taxes last year on her salary of $15. 000. And her employer matched it. She and 34 million other wage earners pay the pensions for Pic 13 million retired West germans in what Schmidl used to Call a social contract Between Hie generations until in Gol Loo expensive. Afler he won re election last october he tried to postpone promised raises in nil pen Sions from july to next january bul suffered an embarrassing and damaging Rebuff from members of ius own party. Adele Hermens. A 65-year-old German pensioner whose husband. Robert retired 10 years ago. Says she in t really worried by All the talk about the crisis in the system that pays them a Bull s250 a week in benefits. They be increased pensions by so much that even if hey decide retired penile shul Day insurance premiums again we can in in and probably most people  mrs. Hermen s husband was a civil servant and his pension is higher than the average. The government s system of linking individual pension increases to grains in profits and productivity in the whole West German Economy has doubled his Check since he stopped  did not panic last year when he had m hospitalized for stomach pains after three months in tin Hospital and an operation to remove an intestinal tumor. The Bill was close to $10.000. But every Penny of n was paid by their health insurance. Next july 1. The Hermens and All other West German pensioners will gel another 9 9 per cent raise the government s plans for financing in sound to us critics like a fast shuffle designed to Ward All his year s threatened $10 billion deficit bul not to big tier one looming up in future years. Carter s plan to put social Security on a stronger fool ing includes huge injections of Money from gent nil trea sury funds a reduction in the sue of the social Security Trust fund and 3i billion in Al a social Security taxes Schmidt s plan does All of that except raising taxes and the conservative opposition in Honn says that without More Money it is Buill on Sand it seems inevitable even to government supporters that eventually social Security taxes will have to be increased to 19 per Cunt and that maybe the better off pensioners will have to Stait paying health insurance premiums themselves a Survey by new York times correspondent elsewhere in Europe revealed that the West German problems Wilb social wearily May be the biggest but trouble is coming almost everywhere Rise As Well. Italian employers required to pay 35 per cent of their workers salaries into social Security funds have been cheating More often lately and not paying at All. The system is expected to be $72 million in the red this year and the deficit has been growing  said Umburto Dell Acqua a social Security official in Rome. Two thirds of Italy s 12 million pensioners receive less than $1,020 a year and look illegally for extra work. In France. The s40 billion social Security fund pays for medical expense s or he whole population us Well As pen Sions but retirement payments Are tar smaller than those in Germany. Mam retired people get Only si50 a month and the system May run shoo million deficit this  Britain Loo. A pension fur a single person can be As Little As $100 a month of the eight million unions draw ing retirement pensions two million can t gel by and have to ask the authorities or supplementary welfare belief its. Bal ish officials say. Emergency Hoydu have medicare saturday May 21, 1977 the stars and stripes Page 13