Of course, those population trends have been forecast for years. Some countries, such as Britain and the Netherlands, have responded by making individuals and their employers assume more of the responsibility for pensions. But many Continental governments dragged their feet. Now, the rapid runup in costs in finally forcing them to act. State-funded pension payments make up around 12% of gross domestic product in Germany and France and 15% in Italy — two percentage points more than 20 years ago. Pensions account for an average 21% of government spending across the European Union. The U.S. Social Security system, by contrast, consumes just 4.8% of GDP. The rising cost is having serious repercussions on key European nations' commitments to fiscal restraint. "Governments have no choice but to make pension reform a priority," says Antonio Cabral, deputy director of the European Commission's Directorate General for Economic & Financial Affairs.
Just as worrisome is the toll being exacted on the private sector. Corporate contributions to state pension systems — which make up 19.5% of total gross pay in Germany — add to Europe's already bloated labor costs. That, in turn, blunts manufacturers' competitiveness and keeps unemployment rates high. According to the Institute of German Economics in Cologne, benefit costs reached a record 41.7% of gross wages in Germany last year, compared with 37.4% a decade before. French cement manufacturer Lafarge says pension cost of $121 million contributed to a 9% fall in operating profits last year.
To cope, Germany and most of its EU partners are using tax breaks to encourage employees to put money into private pensions schemes. But even if private pensions become more popular, European governments will have to increase minimum retirement ages and reduce public pensions. While today's seniors complain about reduced benefits, the next generation of retirees may look back on their parents' pension checks with envy.
7. What does the author want to tell us from the example of the retired bank teller Sabine Wetzel?
8. Paraphrase Italian Finance Minister Giulio Tremonti's statement "The welfare state is producing too few cradles and too few graves." (para.3)
9. Introduce briefly the pension reforms in some key European countries.
10. What is implied by the last sentence of the passage "While today's seniors complain about reduced benefits, the next generation of retirees may look back on their parents' pension checks with envy."?
SECTION 6: TRANSLATION TEST (30 minutes)
Directions: Translate the following passage into English and write your version in the corresponding space in your ANSWER BOOKLET.
舒舍予,字老舍,现年四十岁,面黄无须,生于北平,三岁失怙,可谓无父,志学之年,帝王不存,可谓无君,无父无君,特别孝爱老母。幼读三百篇,不求甚解。继学师范,遂奠教书匠之基,及壮,糊口四方,教书为业。甚难发财,每购奖券,以得末奖为荣,示甘为寒贱也。二十七岁,发愤著书,科学哲学无所终,故写小说,博大家一笑,没什么了不得。三十四岁结婚,今已有一男一女,均狡猾可喜。书无所不读,全无所获,并不着急,教书做事,均甚认真,往往吃亏,也不后悔。再活四十年,也许能有点出息。