It is therefore essential that the efficiency-enhancing price mechanism should be used as much as possible. Furthermore, people must take greater responsibility for their own health. In our view, one of the main problems is that the health system is financed on a wage-related basis.
A changeover to a flat-rate health premium with state aid to avoid hardship in certain cases is one possible solution. Problem area 3: public finances Germany will record a general government deficit of more than 3% of GDP in 2004 for the third year in succession.