In the ongoing debate about social state reforms, economist Georg Cremer is calling for changes to how deductions and benefits are calculated for low-income households. He suggests that those with limited earnings should receive state assistance for a longer period. According to Cremer speaking to the “Neue Osnabrücker Zeitung” (noz), a feasible goal would be ensuring that at least 30 cents of every extra euro earned remains with the family. The commission drafting the social state reforms has also used similar calculations provided by the Ifo Institute. Cremer, who previously served as the General Secretary of the Caritas Association and is currently a member of the federal government’s Pension Commission, highlighted that current deductions, such as housing allowances or child supplements, primarily affect single parents and families with multiple children whose gross income falls between 3,000 and 5,000 euros. He pointed out that this process often results in a negligible difference in disposable income, amounting to only 100 or 200 euros, a situation he described as deeply frustrating. Such a reform is estimated to cost between two and three billion euros.
Economist Cremer Demands 30 Percent Guarantee for Low Earners
