A leading German economist, Veronika Grimm, has advocated for a reassessment of social security benefits in light of increasing financial pressures on the country’s pension, care and health insurance systems. In remarks published Sunday, Professor Grimm argued for greater transparency regarding the affordability of existing benefits packages, suggesting a candid conversation about which provisions are genuinely sustainable.
Grimm cautioned against making commitments that may prove difficult to fulfill, citing the recently approved government decision to maintain pension levels at 48 percent as a case in point. She suggested that such assurances could discourage individuals from making private provision for their future, even when financially capable.
The economist extended this argument to the care insurance system, stating that benefit reductions may be necessary to ensure its long-term viability. She firmly dismissed proposals for a comprehensive, universal care insurance, arguing that those able to contribute financially to their own care should do so. This, she believes, is essential to maintaining a sustainable system.
Professor Grimm also emphasized the need to monitor labor costs, which currently stand at 42 percent and could rise to 45 percent by the end of the current legislative period. She warned that such high costs threaten to make employment more expensive and less attractive, potentially impacting the competitiveness of the German economy.