Members of Germany’s governing coalition – the Social Democratic Party (SPD) and the Green Party – have publicly disagreed with economist Veronika Grimm’s recent assertion that cuts to social security benefits are inevitable.
Dirk Wiese, SPD parliamentary group manager, stated that the suggestion of benefit reductions does not align with the party’s position. He emphasized the importance of exploring solutions beyond simply curtailing services for citizens, referencing the coalition’s agreement to establish a commission tasked with reforming the social security system. Wiese indicated a desire to await the commission’s findings, expected by the end of the year, while reaffirming the SPD’s commitment to a functioning social welfare system as a cornerstone of Germany’s social market economy.
Andreas Audretsch, Green Party parliamentary group vice-chair, also voiced criticism, arguing that further reductions to pensions would disproportionately impact women, particularly those in eastern Germany, potentially leading to increased poverty in old age. He highlighted the reliance of many on statutory pensions and emphasized the importance of maintaining the current pension level of 48 percent, following previous declines.
Audretsch suggested alternative approaches to stabilizing social systems, including increasing labor force participation. He pointed to the potential for an additional 850,000 full-time jobs if women were able to work to their full capacity and improved integration of immigrants into the labor market. He also called for a re-evaluation of private pension schemes, deeming the current “Riester” model a failure.
He challenged proponents of benefit cuts to specify which services would be affected, questioning who would no longer receive care or support. Audretsch advocated for improving system efficiency and effectiveness, rather than reducing access to essential services.
Grimm, a member of the German Council of Economic Experts, had previously argued that the strained financial situation of social insurance systems necessitates a frank discussion about affordable levels of service. She cited the current pension “stabilization line” and the sustainability of the long-term care system as areas of concern, suggesting that those capable of financing their care should do so to ensure the system’s financial viability, potentially requiring benefit reductions.