With an inflation of around 2% and an increase of tax revenue in the first half of 2017 of 4,3%, the German government is placing a heavy burden on their citizens. Every year the average German has less money to spend, and the accounts payable of the German Federal government rise substantial every year. The reason for this is simple, the German state pension system is based on a pay as you go system. This means that the employees of today pay indirectly for the state pension of retirees. At the moment nearly a quarter of the income of a working German goes to retirees, and still this isn't covering the cost for the state pensions. It's absolute madness and it's is unsustainable.
Next month there are elections in Germany and it might be possible the Merkel era is coming to an end. It will be tough to form a new coalition government which can also implement new policies to avoid an disastrous state pension crisis.
When the German state can't pay the promised pensions and the ECB will start tapering, interest rates will rise and then the real crisis might begin as state will have no choice as to default on their bonds. Interesting times.