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. Last Updated: 07/27/2016

German Pension Woes

GARMISCH-PARTENKIRCHEN, Germany -- Bundesbank chief economist Otmar Issing said Tuesday that recent stock market turbulence was no cause for alarm and had no direct impact on Bundesbank policy.

He also said shortcomings in government pensions policy could hamper economic growth. The government plans to raise the level of pension contributions to 21 percent of gross pay from 20.3 percent from the start of 1998.

Issing said there were fundamental problems in the German pensions system "which cannot promote growth." He added that the ever-rising burden of charges on employees could cause increasing emigration by high performers.