Riots in France: In Germany, housing eats away at people's income even more.
First, businesses were plundered, then according to eyewitnesses, the 143-year-old town hall in Limoges burned on Saturday. The images of violence now overshadow the concerns of the demonstrators: they demand more teachers and higher wages and protest against rents for which hardly any money is left to live.
The protests began with students and university students who took to the streets against dilapidated classrooms and problems with university admission. In the meantime, the discontent extends further. The French Renters' Union CNL explicitly called for participation in the demonstrations of October 17th. They criticized rising rents and the planned freezing of housing benefits for 2027.
Many Germans have little reason to look to the neighboring country, especially when living, to ease their situation. In German cities, 12.6 percent of people have to spend more than 40 percent of their disposable income on housing costs. In France, it is nine percent. So, more than 400 euros disappear for those affected by housing alone out of 1000 euros.
In both countries, the question also arises as to why so little remains from income at the end of the month despite work and higher salaries.
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Rentals in these countries have recently risen most sharply in Berlin and DĂĽsseldorf. Even in the countryside, the housing cost overload in Germany is almost three times that in France.
Financial burdens in Germany are not left without consequence either. They may not be expressed in street fights, but rather in the election polls. In the recent state elections in Saxony-Anhalt and Mecklenburg-Vorpommern, economy, work, and social security were among the strongest election motives. In Berlin, the Left Party managed to gain support on the housing issue, making it a central theme of their campaign.
Germany: 1000 Euros More Salary and Little Prosperity
But it is not just housing costs that are a problem. In fact, real wages in France can hardly compensate for the burdens of inflation. Although wages in France and Germany have nominally increased significantly, inflation has largely eaten up the increase.
According to Le Monde, the French median wage has increased by 22.8 percent since 2017. After inflation of 23.4 percent, nothing is left from the increase. Bloomberg reports that the labor market reforms by President Macron have not yet changed the fact that employees still lack around 500 euros per month to cover their expenses despite a professional advancement.
In Germany, full-time employees can practically afford only about four percent more due to high inflation, even though the average gross salary has increased by more than 1000 euros per month. It is particularly bitter where more work and a higher gross salary do not translate financially.
In both countries, taxes, social contributions, and the elimination of state benefits ensure that surprisingly little remains from additional earnings. Thus, a central promise of the social market economy in Germany wavers: that effort and professional advancement are financially worthwhile.
Calculations by the ifo Institute show that for certain households, more than 90 percent of a salary increase can be consumed by taxes, social contributions, and lost social benefits. Because with rising income, not only higher taxes are due, but state subsidies like housing allowances and child benefits are also cut. In the extreme case, less than ten euros of additional gross income actually remains out of 100 euros.
The question of education becomes a question of justice
An omnipresent feeling of economic decline has turned the original criticism of educational deprivation into a much larger question of justice.
At the insistence of the CSU, the Black-Red party brings back the mothers' pension. The Young Union had sharply criticized the "trickle-down principle" for mothers.
© IMAGO/Chris Emil Janssen
Both in France and Germany, the state must take on even greater obligations from the past and at the same time invest in the future of its citizens. According to a current government report, 32 percent of the French Ministry of Education's budget is now allocated to pension obligations to former civil servants. This amounts to 28.5 billion euros. Precisely in the country where students protest against poor educational opportunities, the provision for older employees binds considerable public funds.
In Germany, the federal government has decided to secure the statutory pensions against a stronger decline relative to wages until 2031. This is added by the Mothers' Pension III, which will give more consideration to childcare periods for children born before 1992 and costs the population around five billion euros annually. This was sharply criticized by the leader of the Young Union, Johannes Winkel.
In the summer, he linked pension increases to the increase in BAföG and complained about cuts to parental leave. For example, the maximum basic parental allowance of 1800 euros per month has not been increased since 2007. Due to inflation, it has also lost considerable purchasing power.
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If the privileges of certain groups are protected while others pay for them, this strains the sense of justice in society in the long run. That is why the German dispute was also about pension reform. What is visible on the streets in France is therefore also a warning for Germany: Not only the level of burdens determines social peace, but also the question of how fairly they are distributed.
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