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Germany's CSU Rejects Health Care Charge Proposal

Monday, February 15, 2010

Vehemently opposed to the introduction of a health care charge in Germany, Bavaria’s Christian Social Union (CSU) has called the government’s commission on health care reform into question.

Sparking yet another major furore, Bavaria’s Minister for Health Markus Söder has announced that the CSU will not agree to, nor will it entertain the idea of, such a tax.

According to Söder, the government’s commission should focus instead on controlling expenditure in order to reduce the EUR4bn deficit, and on improving patient provision.

Without the support of Bavaria’s CSU, the coalition government will not have the necessary majority in parliament to adopt the reform.

Söder’s remarks have increased pressure from the CSU on government Health Minister Philipp Rösler, steering the reform. Under the current proposal, a standard legal health insurance contribution would be imposed on all individuals in Germany, irrespective of their earnings. To redress the obvious social imbalance here, a subsidy would be provided from state tax revenue. Full implementation of this system is estimated to cost the government in the region of between EUR20bn and EUR35bn a year.

Given Germany’s record level of state debt, its ability to finance these plans currently appears totally unrealistic. However, Health Minister Rösler has emphasized his intention to embark on the first stages of this reform, and has also indicated that the government’s commission will establish the specific details of the proposals.

Alluding to recent figures from the Finance Ministry, suggesting that the top rate of tax would have to rise to 73%, Söder argued that the introduction of a health care charge would inevitably place an enormous burden on both individuals and businesses.

Responding to calls from the Christian Democratic Union to reduce the rate of value-added tax applied to medicines, Rösler made known in a separate announcement his determination to lower the cost of medicine.

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The Report

Offshore Trusts Guide: Introduction

The History of Offshore Trusts
Development of Professional Competence in the Jurisdictions
What Future for the Trust?
The New Age of Transparency
The Swiss Association of Trust Companies
The Society of Trusts and Estates Practitioners

Offshore Trusts Guide: Jurisdictions

Bahamas

Bahamas: Legal Framework and Formation Rules and Fees
Bahamas: 2006 Private Trust Companies Legislation

Barbados

Barbados: Legal Framework and Formation Rules and Fees
Barbados: Supervisory and Licensing Regime and Fees

Bermuda

Bermuda: Legal Framework and Formation Rules and Fees
Bermuda: Supervisory and Licensing Regime and Fees

British Virgin Islands

British Virgin Islands: Legal Framework and Formation Rules and Fees
British Virgin Islands: Special Trusts Act 2003
British Virgin Islands: The Trustee Act 2003
British Virgin Islands: :Supervisory and Licensing Regime and Fees
British Virgin Islands: New Laws on Private Trust Companies
British Virgin Islands: New Private Trust Company Regulations

Cayman Islands

Cayman Islands: Legal Framework and Formation Rules and Fees
Cayman Islands: Supervisory and Licensing Regime and Fees

Cook Islands

Cook Islands: Legal Framework and Formation Rules and Fees
Cook Islands: Supervisory and Licensing Regime and Fees

Cyprus

Cyprus: Legal Framework and Formation Rules and Fees
Cyprus: Supervision, Licensing and Tax

Gibraltar

Gibraltar: Legal Framework and Formation Rules and Fees
Gibraltar: Legislation, Regulation and Supervision

Guernsey

Guernsey: Legal Framework and Formation Rules and Fees
Guernsey: Trusts Law 2007

Isle of Man

Isle of Man: Legal Framework and Formation Rules and Fees
Isle of Man: Supervisory and Licensing Regime
Isle of Man: Uses Clients and Tax Treatment

Jersey

Jersey: Legal Framework and Formation Rules and Fees
Jersey: Supervisory and Licensing Regime
Jersey: Trusts Amendment Act 2006
Jersey: Foundations

Liechtenstein

Liechtenstein: Legal Framework and Formation Rules and Fees
Liechtenstein: Regulation Supervision and Transparency
Liechtenstein: Characteristics of Liechtenstein Trusts
Liechtenstein: Foundations

Madeira

Madeira: Legal Framework and Formation Rules and Fees

Malta

Malta: Legal Framework and Formation Rules and Fees
Malta: The Trust and Trustees Act 2004

Mauritius

Mauritius: Legal Framework and Formation Rules and Fees
Mauritius: Characteristics of the 2001 Trusts Act
Mauritius: Additional Provisions of the 2001 Trusts Act
Mauritius: Tax Treatment

Monaco

Monaco: Legal Framework and Formation Rules and Fees

Nevis

Nevis: Legal Framework and Formation Rules and Fees

Panama

Panama: Legal Framework and Formation Rules and Fees
Panama: Requirements for Acting as Trust Company in Panama

Seychelles

Seychelles: Legal Framework and Formation Rules and Fees

Turks & Caicos

Turks & Caicos: Legal Framework and Formation Rules and Fees
Turks & Caicos: The Voidable Dispositions Ordinance

Vanuatu

Vanuatu Legal Framework and Formation Rules and Fees




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