In today's world, Elterngeld is a topic of great relevance and interest to a wide spectrum of society. As time has passed, Elterngeld has gained increasing importance in various fields, from politics to popular culture. In this article, we will thoroughly explore the impact and relevance of Elterngeld, analyzing its implications in everyday life, its evolution over the years and its influence in different areas of study. From its origins to the present, Elterngeld has been the subject of debate and reflection, and it is crucial to understand its importance in the current context. Therefore, it is essential to delve into this analysis to fully understand this topic that is so relevant today.
Elterngeld (translated literally from German as parents' money) is a tax-financed payment for couples which pays an amount of money to support the costs of bringing up a child. Elterngeld schemes exists in Germany, France, and Scandinavia.
It generally does not provide full support of the costs of bringing up a child. It is only provided for a limited period, ranging from until one year after birth until 18 years of age in Norway. The amount of Elterngeld granted depends in some places on the income of the parents.
The need for Elterngeld schemes is illustrated by the declining birth rates in Western European countries. For instance, in Germany the present birth rate is 1.3 children per woman, which is below what is calculated at the economically stable rate of 2.1 children per woman. Twenty-five European Union states currently have birth rates below this level. The issues behind the declining birth rate include the higher costs of maintaining a child, and the greater dependence within the household budget economically on women.
Elterngeld is effectively a third state-level subsidy for some parents—on top of maternity allowance and state income benefits. Economists argue that this has created a complex and costly system of state benefit which could be simplified and reduced in expenses.
Economists and critics also argue that the allowance creates shifting birth patterns. In December 2006, media reports suggested that German parents were seeking ways to delay the births of their children until 1 January 2007, so that they would gain access to Elterngeld of up to 25,200 euros (two thirds of their former salary for up to a year), up from 7,200 euros per annum.
Several proposals have been offered to use elterngeld-style payments to combat the effects of sex-selective abortion in Asia.