A German employers’ federation, the Bundesvereinigung der Deutschen Arbeitgeberverbände (BDA), has called for more courage to implement reforms in the healthcare sector, following discussions between the Union and SPD on forming a government.
According to BDA’s main executive, Steffen Kampeter, a comprehensive agenda for 2035 is needed to ensure a sustainable healthcare and care system. However, the federation’s leader expressed disappointment with the current state of the coalition talks, stating that the proposed reforms do not adequately address the pressing problems in the sector.
Healthcare and care are the largest cost drivers in social insurance, with the cost of care now exceeding the cost of unemployment insurance, Kampeter noted. At the same time, a “particularly high problem pressure” is met with an “obvious reluctance to reform” which the BDA chief described as a “dangerous mix.” The federation warns that the inefficient and costly system risks becoming a societal hot potato.
The BDA also criticized the persistent high social insurance contributions, labeling them a “net drain.” If employees do not see the benefits of increased wages due to the state’s continued high take, it demotivates them, Kampeter said. A “social insurance brake” would be an active labor market policy, he added, emphasizing that this would not mean a reduction in the social welfare state, but rather a more targeted approach.
The federation’s leader stressed the need for the healthcare, care and unemployment insurance systems to be significantly more efficient than they are currently. “Bringing reforms to the table helps ensure that people have more from the social welfare system, which in turn would cost less for the state budget” Kampeter concluded.