Germany's grand coalition government announced a long-negotiated agreement Thursday to overhaul the country's healthcare system, a central promise of Chancellor Angela Merkel's governing platform. The Christian Democrats (CDU) and Social Democrats (SPD) reached the accord after talks that stretched through the night.
The cornerstone of the reform is a centralized health fund financed by salary-based contributions from workers and employers. Its launch has been pushed back to 1 January 2009, a year later than originally planned. Deficit-running insurance funds will be permitted to raise contributions by up to one percent of gross salary, plus occasional flat fees.
Germany's public health system, which covers roughly 70 million people, carries chronic debt, and healthcare costs have risen more than 50 percent over the past decade. The country ranks third globally in proportional health spending, behind the United States and Switzerland, according to the OECD.
Opposition parties and trade unions were critical. The Greens argued the delayed launch meant the fund would arrive only as the coalition's four-year mandate expires. The DGB labor federation called the deal "the lowest common denominator."
The agreement still requires cabinet approval and passage through both chambers of parliament before taking effect.
Historical summary. TurkishPress restated this wire report, first published in October 2006, in its own words.