In Germany, day care for children under the age of three is legally (according to the German Social Code, SGB) a mandatory task of the states and municipalities. However, because they are also responsible for financing (financial responsability), increasing demands for care result in considerable additional expenditure at this level of government. This can lead to an overall increase in public debt that is incompatible with the objectives of the Stability and Growth Pact. For this reason, central banks are also monitoring the relevant financing flows. – See deficit ratio, budget deficit, money hedge, child benefit, Methuselah syndrome, demand financing, Popitz’s law, rule, golden, debt brake, debt ratio, welfare state trap, Stability and Growth Pact, constitutional article one, debt ratio, public, Wagner’s law. – Cf. Monthly Report of the Deutsche Bundesbank, July 2007, p. 44 (Expansion of day care for children; conflicts).
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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