The rate is set to rise in order to curb the declining level of pensions. Yet, this is driving up labour costs and reining in the competitiveness of the German economy. It is thus essential not to pull this level too far. I believe that the same applies to a tax-financed increase in the Federal grant.
Instead, their stories are consistent with a slow recovery due to the very nature of the recession from which we have emerged. The financial crisis was a severe shock that impacted many economies around the world and led to a recession of great depth and structural imbalances.