Germany’s leading employers’ association, Gesamtmetall, has cautioned that the country’s ongoing economic downturn will likely persist without substantial reforms to its social welfare system
Speaking on Sunday, Jens Wohlfeil, Managing Director for Tariff and Social Policy at Gesamtmetall, stated that Germany has been operating with expenditures exceeding its means for years He highlighted a growing disparity between rising social welfare spending and a prolonged economic contraction – the most significant since the founding of the Federal Republic of Germany
Wohlfeil indicated that social benefits accounted for a record 13 trillion euros in 2024, representing nearly one-third of Germany’s gross domestic product allocated to pensions, care and other social provisions
The employers’ association asserts that a reform of the social welfare system is overdue Wohlfeil emphasized that continued economic hardship is probable if the current government does not implement changes designed to reduce costs and enhance both effectiveness and efficiency He stated that a stable economy is a prerequisite for a stable government
Therefore, Gesamtmetall welcomes the establishment of the Social State Commission and its mandate to review the effectiveness and efficiency of all social welfare benefits, formulating recommendations accordingly The association intends to evaluate the Commission’s performance based on its ability to deliver meaningful proposals Wohlfeil stressed that preserving and future-proofing the social welfare system requires more than superficial alterations, urging a commitment to genuine and deep-rooted reform