Germany: Welfare State Faces Cutbacks

Chancellor Friedrich Merz stated that the social assistance system must be fundamentally re-evaluated, saying: “The welfare state we have today can no longer be financed with what we produce in the economy.”

In 2023, basic social assistance payments to those in need amounted to €43 billion, while in 2024 these payments increased by €4 billion, reaching €46.9 billion.

Slightly more than half of the social benefits (52.6%) — €24.7 billion — went to German citizens, while €22.2 billion (47.4%) went to non-German residents.

A total of 5.4 million people benefit from Bürgergeld (citizens’ allowance), ranging from the unemployed to the working poor and adults with disabilities. In 2024, these groups received €10.7 billion in payments. Among those receiving Bürgergeld are 1.5 million children. Of the remaining 3.9 million, 2.2 million cannot work because they are in some form of education or are caring for relatives or small children.

In 2024, a single adult Bürgergeld recipient received €563 per month. In addition, the state covered healthcare, long-term care insurance, rent, and heating expenses.

The social welfare system ensures that people in difficult situations can meet their most basic needs, while also standing out as one of the core features that has long distinguished Germany from other countries.

And one more note: Following Russia’s invasion in 2022, Germany paid €6.3 billion in support to the hundreds of thousands of Ukrainians who fled to the country.

Source: Habertürk