Europeans traveling through the United States for the World Cup do have more vacation time than most Americans. Under European Union rules, workers are entitled to at least four weeks of paid annual leave, with many countries and collective agreements offering additional time. However, the OECD's 2025 tax-wedge numbers reveal the cost of this bargain. Belgium was highest at 52.5% for a single average worker, followed by Germany at 49.3%, France at 47.2%, Austria at 47.1%, and Italy at 45.8%, compared to the OECD average of 35.1%. The tax wedge measures the gap between what it costs to employ a worker and what that worker takes home after income tax and social-security contributions.
Europe built much of its welfare state for societies with more children, stronger growth and more young contributors. On January 1, 2025, 22% of the EU population was already 65 or older. Eurostat projects the working-age share of the EU population, those aged 20 to 64, to fall from 58% in 2025 to 50% by 2100. Germany's public pension depends heavily on today's workers paying for today's retirees, with the regular retirement age already rising to 67 for Germans born in 1964 or later. A government-appointed pension commission has discussed a Swedish-style funded pension element, mandatory contributions, and a gradual increase in the retirement age linked to life expectancy, a path that could eventually push retirement toward 70.