Editing Helmut Schmidt (section)

=== Domestic reforms ===
{{Cleanup section|reason=The following subsections concerning Schmidt's political policies and actions may be too expansive.|date=March 2022}}
Although Schmidt did not feel that he was in a position to substantially extend the social reforms of the [[Willy Brandt#Chancellor of domestic reform|Brandt Administration]], due to the economic problems he encountered during his time as chancellor, a wide range of reforms were nevertheless carried out under his administration. Increases were made to [[pensions]], which went up in numerical terms. Adjusted for changes in the annual price index, pensions went up in real terms. However, the rate of pension was not changed in 1978 (even though prices increased by 2.7%), and in 1980 and 1981 the real value of pensions fell by 1.5% and 2.3%, respectively.<ref>''The Social Democratic Party of Germany 1848–2005'' by Heinrich Potthoff and [[Susanne Miller]]</ref> Improvements were made in family allowances, with monthly subsidies for children increased by over 100% in 1975.<ref name="Taxation">''Taxation, wage bargaining and unemployment'' by Isabela Mares</ref>

{| class="wikitable floatright"
|+Economic Statistics
!Year!!Pension!! Inflation!! Index !!Real Value
|-
|1975||11.1% || ||+5.1% || 
|-
|1976||11.0% || ||+6.7% ||
|-
|1977||9.9% || ||+6.2% ||
|-
|1978|| ||+2.7% ||0 ||
|-
|1979||4.5% || ||+0.4% ||
|-
|1980||4% || || ||−1.5%
 |-
|1981||4% || || ||−2.3%
|-
|1982||5.8% || ||+0.6% ||
|}

Improvements were made to invalidity and old-age pension provision for the unemployed, who (from 1977 onwards) were technically insured free of charge under the old-age pension and invalidity scheme. Previously, there had only existed partial and restricted coverage for the unemployed.<ref name="Responses to poverty">''Responses to poverty: lessons from Europe'' by Robert Walker, Roger Lawson, and Peter Townsend</ref> The Law to Improve Occupational Old Age Pensions (1974) extended coverage of occupational pensions, whilst also "co-ordinating them more closely with state pensions and setting minimum standards as regards benefit levels and the preservation of pension rights". By 1976, as a result of this legislation, 65% of private sector employees were covered by occupational schemes, and over two-thirds of these workers were eligible for benefits equal to more than 15% of their earnings at retirement.<ref name="Responses to poverty" /> This legislation also acquired that entitlements to occupational pensions must not expire after leaving a firm, and that occupational pensions must not be reduced as a result of receipt of benefits under the public insurance system. The Social Insurance Law for the Handicapped (1975) extended compulsory coverage to disabled persons working in special establishments for the disabled (medical benefits and cash benefits to replace earnings from work).<ref name="Growth to Limits" /> In 1976, a new declaration of social rights was made,<ref name="Socialists in the Recession">{{cite book |title=Socialists in the Recession: The Search for Solidarity |first1=Giles |last1=Radice |first2=Lisanne |last2=Radice |date=1986 |publisher=Macmillan |isbn=978-0-333-38845-7 |url=https://books.google.com/books?id=oekSAQAAMAAJ}}</ref> and in 1979, an Act was passed which lowered the pensionable age for severely disabled persons to 61 years, and to 60 years as from 1980.<ref>{{cite book|url=https://books.google.com/books?id=cRlfyus2mgwC&pg=PA51 |title=Changing Patterns of Social Protection |isbn=978-1-4128-1935-0 |access-date=2013-09-10 |last1=Gilbert |first1=Neil |last2=Van Voorhis |first2=Rebecca A. |publisher=Transaction Publishers}}</ref>

In October 1974, a Rehabilitation Benefits Alignment Act was passed, with the intention of promoting rehabilitation of the disabled by extending certain benefits to them.<ref>{{cite book |url=https://books.google.com/books?id=gl0tzPYgko8C&pg=PA435 |title=Industrial Relations |date=1974-10-01 |isbn=978-81-7446-619-8 |access-date=2013-09-10 |author1=Singh |publisher=Excel Books India}}</ref> To meet the need for more uniform medical treatment in rural areas and on the peripheral of cities due to a lack of panel doctors in those areas, a bill was passed in December 1976 which improved the possibilities of panel doctors' associations by ensuring that panel doctors were available to provide treatment, while also providing for planning according to need and the participation of the sickness insurances. An Act of August 1975 on criminal law reform introduced "other forms of assistance" such as medical advice on contraception, together with assistance pertaining to sterilisation and abortion.<ref>''The Evolution of Social Insurance 1881–1981: Studies of Germany, France, Great Britain, Austria, and Switzerland'' edited by Peter A. Kohler and Hans F. Zacher in collaboration with Martin Partington</ref> New assistance benefits were created in 1975 for family planning and maternity consultations, whilst a constant attendance allowance was increased.<ref name="aei.pitt.edu">[http://aei.pitt.edu/10250/1/10250.pdf Report on the Development of the Social Situation in the Communities in 1975]</ref> Housing renovation and energy savings legislation was introduced in 1977, while a constitutional reform of 1981 increased federal powers in health and education.<ref name="The Federal Republic of Germany">The Federal Republic of Germany: The End of an era edited by Eva Kolinsky</ref>

In July 1974, special benefits were introduced to compensate for wages not paid as a result of bankruptcy for a maximum of up to three months. Increases in income-limits for housing allowances were carried out, together with housing allowance rates, while major improvements were made in welfare provision for the elderly.<ref>''The rise and decline of the state'' by Martin Van Creveld</ref> By 1982, the purchasing power of the average pension was 2.5% better than in 1975.<ref name="The Federal Republic of Germany"/> In 1975, tax allowances were replaced by child benefits, while payment for the first child was introduced.<ref name="Socialists in the Recession"/> A tax relief act reduced income taxes and provided additional tax benefits for housing allowances.<ref name="Taxation" /> The Schmidt administration also introduced social policy legislation in the late 1970s, which increased family allowances (though by a smaller amount than in 1974) and maternity leave benefits.<ref name="Taxation" /> The increases in benefits under the Schmidt administration arguably had a positive impact on reducing inequalities, with the percentage of West Germans living in poverty (according to one measurement) falling between 1978 and 1982.<ref>{{cite web |url=http://www.lisproject.org/publications/liswps/148.pdf |title=Luxembourg Income Study Working Paper Series |archive-url=https://web.archive.org/web/20121123223222/http://www.lisproject.org/publications/liswps/148.pdf |archive-date=2012-11-23}}</ref>

Under the law of June 1974, the residents could participate in the management of the establishment through a consultative committee.<ref name="pitt.edu" /> A law of June 1975 amended the Employment Protection Law and the Law on the provision of temporary workers which improved the legal protection of temporary migrant workers in West Germany. A law of December 1975 gave the right to claim under the sickness insurance scheme for medical consultations for family planning purposes. A law of May 1975 extended social security to disabled persons according to various procedures.<ref name="aei.pitt.edu" />

A law of April 1976 on youth employment limited working hours to 40 hours in a 5-day week, raised the minimum working age from 14 to 15, increased leave, improved conditions for release from work for day attendance at vocational training school and for periods of weeks under the block release system, and improved protection at work by restrictions on employment in dangerous or unhealthy work. A law on protection against dismissal was amended by abolishing the minimum age limit of 18, so that young workers under eighteen were now also protected against dismissal. The Ministry for Youth, Family Affairs and Health encouraged a pilot scheme, of a scientific nature, aimed at promoting the development of qualified advisory services on family planning, sexual problems and problems linked with pregnancy. A regulation of June 1976 laid down detailed rules governing 'aid to overcome particular social difficulties'. This measure was specially aimed at marginal social groups, such as former convicts and the homeless, and consisted of providing information, personal guidance, help in obtaining and maintaining a home and in obtaining and keeping a job, in addition to guidance as regards training and the organization of leisure time. The general section of the Social Code, which came into effect in January 1976, introduced basic measures concerning the social services. It laid down an obligation to establish the services and institutions needed by the population and to provide them with information and advice on their social rights. These provisions had already had certain effects, in particular a considerable growth in home help services and social centres. A regulation in application of a 1974 law on old people's homes and adult hostels was introduced, according to which compulsory consultative committees could be set up by the residents to ensure their participation in the running of these establishments in a greater measure than in the past.<ref name="European Economic Committee-1977" /> A law passed in August 1974 supplemented the protection provided for handicapped people under a law passed during the Brandt Administration in April 1974 by providing that, henceforth, the benefits for the purposes of medical and occupational rehabilitation would be the same for all the categories of persons concerned: war victims, the sick, the victims of industrial accidents, congenitally handicapped persons: a total of about 4 million persons in all.<ref name="pitt.edu" />

The 1976 Act for the Promotion of Urban Development and the 1977 Housing Modernisation Act, together with the 1971 Act for the Promotion of Urban Development passed by the Brandt Administration, enabled most West German cities by the end of the Seventies to introduce programmes aimed at renovating their pre-war residential areas.<ref name="Urban and rural change in West Germany by Martin Trevor Wild">{{cite book |title=Urban and Rural Change in West Germany |first=Martin |last=Trevor |date=1983 |publisher=Rowman & Littlefield |isbn=978-0-389-20392-6 |url=https://books.google.com/books?id=YKU5DwAAQBAJ&dq=Urban+and+Rural+Change+in+West+Germany&pg=PT22}}</ref> Additional tax reforms were introduced that lowered the tax burden on low-income households, and which played an important role "in pre-empting a real decline in the income and purchasing power of workers".<ref name="Taxation" /> A law was passed to encourage low-income home ownership,<ref>{{cite web |url=http://www.chroniknet.de/daly_de.0.html?year=1975&month=4&day=10 |archive-url=https://web.archive.org/web/20130606104348/http://www.chroniknet.de/daly_de.0.html?year=1975&month=4&day=10 |url-status=dead |archive-date=6 June 2013 |title=10.04.1975 – Präsident Gerald Ford Rede Kongress Washington 722 Mio |publisher=Chroniknet.de |date= |access-date=2013-09-10 }}</ref> while 250 million marks was provided in 1978 for the promotion of sports and physical education.<ref>{{cite web |url=http://www.chroniknet.de/daly_de.0.html?year=1978&month=8 |title=August 1978 – Oberste Gericht DDR Berufungsantrag Regimekritikers Rudolf Bahro Verurteilung |publisher=Chroniknet.de |date= |access-date=2013-09-10 |archive-date=6 June 2013 |archive-url=https://web.archive.org/web/20130606121152/http://www.chroniknet.de/daly_de.0.html?year=1978&month=8 |url-status=dead }}</ref> That same year, entitlement to educational allowances was extended to all tenth-grade pupils in vocational education.<ref name="Responses to poverty" />

The Introductory Tax Reform Law (1974) increased bad weather payments, part-time workers' benefits and insurance benefits to 68% of net wages, fixed special benefits during vocational training at 90% of net earnings, increased assistance benefits to 58% of net earnings, and abolished special family benefits "in favour of the inclusion of the unemployed under general child allowance scheme".<ref name="Responses to poverty"/> A special tax credit was introduced in 1978 in cases of particular financial burden due to children,<ref name="Growth to Limits" /> while a substantial increase in the child allowance was made in 1979.<ref name="Below">''Below-Replacement Fertility in Industrial Societies: Causes, Consequences, Policies'', edited by Kingsley Davis, Mikhail S. Bernstam, and Rita Ricardo-Campbell</ref> Several policy changes were carried out between 1976 and 1982, such as tax credits and family allowances, which compensated unions for [[incomes policy|wage restraint]] and "guaranteed the maintenance of a constant income level for employed persons and their families".<ref name="Taxation" /> Increases were made in child benefits, which rose on a regular basis (particularly for families with more than one child) for most of the years that the Schmidt Administration was in office.<ref name="Responses to poverty" />

Various measures were also carried out to mitigate the effects of unemployment. Employment creation schemes were introduced to help young workers. The Training Opportunities Act (1976) helped (over a four-year period) to increase the number of vocational training places from 450,000 to 630,000 a year.<ref name="Socialists in the Recession" /> In 1976, a provisional law was introduced to boost the number of apprentices, which reduced the numbers of young people out of work. An experimental retraining programme was launched on the shop floor (lasting from 1979 to 1981), which benefited 45,680 people.<ref name="Responses to poverty" />

In June 1974, a reformed food law was passed into law, which aimed to safeguard consumers from physical harm.<ref>{{cite web |url=http://www.sophienschule.de/comenius/timeline/index_files/Ger74economy.htm |title=Germany '74 – Economy |publisher=Sophienschule.de |date=1974-12-20 |access-date=2013-09-10 |archive-date=2016-03-03 |archive-url=https://web.archive.org/web/20160303212819/http://www.sophienschule.de/comenius/timeline/index_files/Ger74economy.htm }}</ref> The Students' Sickness Insurance Law (1975) extended compulsory coverage to students (medical benefits only), while the Artists' Social Insurance Law (1981) introduced compulsory insurance for artists below a certain income-limit.<ref name="Growth to Limits" /> The Detergents Law (1975) and the Effluency Levies Act (1978) were passed to encourage environmental protection.<ref name="Germany">''Germany, 2000 Years: From the Nazi era to German unification'' by Kurt Frank Reinhardt, Gerhart Hoffmeister, and Frederic Christian Tubach</ref> In 1975, the allowable duration of unemployment benefit payment was extended to twenty-four months during periods of general recession.<ref name="Trade-Off" /> The 1976 law on standard terms of sale gave consumer groups the right to file suits against companies employing unfair terms of sale.<ref>{{cite book|url=https://books.google.com/books?id=gCv4K6D_8MwC&dq=Germany+law+on+standard+terms+1976+consumers&pg=PA63 |title=Consumer Capitalism: Politics, Product Markets, And Firm Strategy in France ... – Gunnar Trumbull|date=2006|isbn=0-8014-4382-2 |access-date=2013-09-10 |last1=Trumbull |first1=Gunnar |publisher=Cornell University Press}}</ref> The Higher Education Framework Act of 1976 pronounced that scientific continuing education was a task to be implemented by the institutions of the system of higher education, thus exceeding their traditional tasks of research and lecturing.<ref>{{cite web|url=http://paginas.fe.up.pt/nuce/GERM.html |title=Ulrike Kommer |publisher=Paginas.fe.up.pt |date= |access-date=2013-09-10}}</ref> In 1977, an "investment programme for the future" was decided upon by the Schmidt Administration, which provided DM 16 thousand million for the improvement of the transport system, an efficient and ecological energy supply, provisions for water supply, vocational training, and the safeguarding of the environment.<ref>{{cite book|url=https://books.google.com/books?id=yCHq-Fgjci4C&dq=germany+Federal+financial+support+local+authority+transport+systems+1971&pg=RA1-PA204 |title=The German Economy in the Twentieth Century: The German Reich and the ... – Hans-Joachim Braun |date=1990 |isbn=978-0-415-02101-2 |access-date=2013-09-10 |last1=Braun |first1=Hans-Joachim |publisher=Routledge }}</ref>

Under a regulation of December 1976, four new occupational diseases were recognised.<ref name="European Economic Committee-1977" /> To expand training opportunities for girls, a pilot scheme was launched in 1978 to open up certain skilled industrial and technical occupations to them.<ref name="European Economic Community-1979" /> Laws restricting the access of migrant workers to certain regions were repealed in 1977, and the existing provisions were made more flexible in order to allow the children of migrant workers who had entered the Federal Republic of Germany in 1975/76 access to employment.<ref name="European Economic Community-1978" /> Legislation governing old people's homes and adult assistance establishments was further supplemented by two regulations, one imposing minimum requirements concerning premises, and the other laying down rules for financial management to ensure that residents were not financially exploited.<ref name="European Economic Community-1979" />

The Fifth Amendment of July 1979 to the Employment Promotion Law provided among other things for an improvement in conditions governing financial support towards basic vocational training for unemployed young people with at least one year's vocational experience, the expansion of training activities for jobs in which there is a shortage of skilled workers and easier access to further vocational training facilities for problem groups (such as the unskilled, the unemployed, and women generally). In 1979, the Federal Minister for Education and Science made funds available for a new further education establishment to train instructors. Under a law amending the law respecting technical working media and the Industrial Code of August 1979, machines and equipment which had been voluntarily submitted for testing and passed by an established body may bear the marking 'GS' (=safety-tested). For medical equipment, the Federal Minister of Labour and Social Affairs was authorized to issue orders containing further safety provisions, while the resale of hazardous equipment and its display at exhibitions may be prohibited in future by factory inspectors even in the case of trading companies.<ref name="aei9816" />

In 1979 DM 219 million was set aside for about 80,000 dwellings under the modernisation programme for dwellings worthy of preservation run jointly by the Federal authorities and the individual {{lang|de|Länder}} (50% of this money was earmarked for modernization priority areas). In addition, DM 2,350 million was made available under a five-year programme to improve the housing stock. Loans and higher tax rebates were also used to encourage modernisation of dwellings and energy-saving measures. 577 slum clearance and urban development schemes in 459 municipalities were also accorded financial support amounting to DM 183.5 million under a law on the promotion of urban development. A law of October 1979 granted a lump-sum allowance for the winter of 1979/80 to help low-income groups to meet the additional outlay incurred by the rise in fuel costs. In August 1979, a programme was adopted for foreign refugees, with resources allocated for aid concerning information, legal advice, psycho-social and medical assistance and for measures to facilitate the integration of refugees or their emigration to other countries.<ref name="aei9816" />

Under a law of July 1980, a farmer's surviving spouse wishing to continue working on the farm could obtain a helper or temporary aid from the agricultural pension fund. Any spouse choosing not to do so was entitled to a survivor's allowance if he or she was no longer able to find suitable paid employment either for reasons of age (over 45) or because there were children to bring up. In other cases, the allowance was designed to facilitate reintegration into working life. This allowance guaranteed the spouse protection under the agricultural sickness insurance scheme, which also covered self-employed fishermen and beekeepers.<ref name="aei9813" />

A special programme was introduced, specially designed for young people who, because of their poor level of education and language ability, were unable to find a suitable job or training place. The young people were offered a one-year full-time course of training to qualify them for a training place or job, and in September 1980, approximately 15,000 young people were participating in these courses. From 1980 onwards, parents could deduct the cost of day care for their children (in day nurseries and nursery schools in particular) from their taxable income up to an annual maximum of DM 600 or DM 1,200 depending on whether the income of a single parent or that of a married couple was involved. Major additions were also made to the regulations on dangerous substances, while comprehensive new regulations concerning installations requiring supervision were introduced. The Federal Ministry for Youth, Family Affairs and Health gave particular attention to assisting parents in assuming their educational responsibilities towards their children. For instance, special 'letters to parents' were distributed free of charge to parents of children under 8, with some 3 million sent in 1979. A determined effort was also made to provide better education for socially disadvantaged children by supporting pilot schemes and research projects. Public funds had been allocated from 1979 onwards to a pilot scheme entitled 'Aid to children in need' under which children's communities were set up in Berlin and Gütersloh to protect and care for children who had been or were at risk of being ill-treated by their parents, while at the same time the family education and advisory services were assigned the task of educating these parents.<ref name="aei9816" />

In terms of workplace rights, a "parity" system was introduced (although in a weakened form) on the supervisory boards of all companies employing over 2,000 workers, a reform which West German trade unions had long fought for.<ref name="Socialists in the Recession" /> This law improved employee representation on the supervisory boards of companies outside the steel and coal industries. The main provision of this new piece of legislation was that in the 650 major companies that accounted for 70% of West Germany's output, employee representation on the supervisory boards rose from one-third to one-half.<ref name="Germany in the Twentieth Century by David Childs" /> In 1976, the Young Persons (Protection of Employment) Act was passed, which forbade the employment of children and young persons required to attend full-time education, with minor exceptions.<ref>{{cite book|url=https://books.google.com/books?id=2tERFy1q6okC&pg=PA63 |title=Recent Developments in the Clothing Industry: Fourth Tripartite Technical ...|date=1994|publisher=International Labour Organization |isbn=978-92-2-109484-5|access-date=2013-09-10}}</ref>

The social protection of civil servants and judges ({{lang|de|Bund}} and {{lang|de|Länder}}) was standardised and improved by a law of August 1974. Under a law of May 1976, victims of acts of violence and their survivors would in future have the right to compensation in respect of the physical and economic consequences in the same manner as protection for war victims.<ref name="European Economic Committee-1977" /> In 1977, DM 8 million was made available by the federal government to welfare bodies to build and modernise holiday homes for families. That same year, the conditions for investment in the privately financed construction of rented dwellings were improved by the reintroduction of decreasing depreciation for buildings. In order to take the situation of the unemployed into account to the maximum possible extent in asset formation policy, certain legal provisions were amended so that in the event of unemployment, personal payments could be made to continue savings plans which entailed employers' contributions. In addition, workers who had been unemployed for a year or more could unblock savings plans before the end of the freeze without losing the financial benefits offered by the State.<ref name="European Economic Community-1978" /> A new special programme with funds of DM 100 million was launched at the start of 1978 to improve training and job opportunities for the disabled. The budget of the Federal Labour Office was increased exceptionally by more than 20%, whilst special emphasis was placed on measures to promote vocational training, job creation, advanced training and retraining. The aim was to reduce the high proportion of unemployed persons lacking training and increase the chances of this group to obtain employment.

A wide range of social liberal reforms were also carried out during Schmidt's time in office. A marriage and divorce law of 1976 instituted the principle of maintenance obligations of each economically stronger partner,<ref name="Sozialliberale" /> That same year, a reform of naming for partners after marriage was carried out,<ref name="Responses to poverty" /> together with a reform of marriage law, which eliminated "moral guilt" as a criterion for alimony payment obligations.<ref name="Responses to poverty" /> The First Marriage Reform Law of 1976 stated that pension entitlements acquired during marriage must be shared with the economically weaker spouse following divorce.<ref name="Growth to Limits" /> In 1977, a law was introduced which enabled married women to enter employment without the permission of their husbands,<ref name="Panacea" /> while prison reforms guaranteed inmates access to courts for any violations of their rights,<ref>{{cite book|url=https://books.google.com/books?id=4af2Ko82tZIC&pg=PA320 |title=Essentials of Corrections|isbn=978-0-495-50438-2|access-date=2015-11-10|last1=Larry Mays|first1=G.|last2=Winfree|first2=Latham Thomas|date=2008-02-28|publisher=Cengage Learning }}</ref> limited sentences in all but the gravest cases to 15 years, and proclaimed rehabilitation to be the objective of incarceration.<ref name="German History in Modern Times">''German History in Modern Times: Four Lives of the Nation'' by William W. Hagan</ref> In 1977, a Sex Discrimination Act was passed.<ref name="Socialists in the Recession" /> In 1981, a legal aid system was established to facilitate access to courts of law.<ref>{{cite book|url=https://books.google.com/books?id=Ks5cULQvt4oC&pg=PA317 |title=Fassbinder's Germany |isbn=978-90-5356-059-4 |access-date=2015-11-10 |last1=Elsaesser |first1=Thomas |date=1996 |publisher=Amsterdam University Press}}</ref>