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How to beat the Germans

Peter Henley|14:15 UK time, Tuesday, 29 June 2010

steveThe World Cup provided a constant sound track as we recorded the Politics Show in Brussels. Trying to film outside the Parliament building we were constantly interrupted by the cheers from a nearby Irish Bar as England played Slovenia.

The Germans eventually outperformed us, but is their economy as well-oiled as their football machine?

Steve Luther is pictured right in the team strip of the Stuttgart Rugby team. He moved from Reading to Southern Germany in 2000 looking for work in the IT industry and got in touch with his own thoughts on the relative merits of the British and German way of doing taxes, spending and all that.

"I cannot get my head round why the British people are making such a fuss over the budget," he starts.

"I work for a Computer company and have not had a pay rise in the last 4 years; the last pay rise I got was 0.04% 5 years ago."

"I pay 42% income tax on every penny I earn. Germany also has no NHS so I have to pay for private medical insurance."

He also pays other insurance deductions for:

  1. Losing his job
  2. If he needs a nursing home
  3. Reunification of the country tax
Totalling 48% deductions. They also pay 19% VAT; petrol is currently about 20p + a litre dearer than in the UK.

He also pays €56 a year for his bin and it costs €3.50 every time it is emptied.

I asked Steve why he felt so strongly.

"I just wanted to point out how much worse off you could be if you lived in a different country. You really do not know how good you have it in the UK."

He agrees that there are some upsides.

"Even as a PAYE employee I can do a tax return every year and claim for travel expenses one way to work each day provided the journey is over 20km, I can also claim for clothes and any materials I need for work."

"Recycling is free here, I have a bin for glass and a bin for paper which also get collected free of charge every alternate month."

Steve still enjoys watching his old South of England TV - and points out that on the continent even that costs more - the licence fee is €240 a year for 2 TV channels ARD 1 and ZDF plus radio.

It was great to get such a detailed comparison from a viewer abroad and some consolation after the thrashing that we got on the football field.

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