A former finance minister is warning of a looming crisis of confidence in the German state, advocating for a sweeping overhaul of the social welfare system and a more assertive leadership style from Chancellor Friedrich Merz. Peer Steinbrück, a prominent figure within the Social Democratic Party (SPD), argues that the current system, characterized by a bewildering array of often overlapping social benefits, is unsustainable and eroding public trust.
In an interview with “Süddeutsche Zeitung”, Steinbrück highlighted the sheer volume of state-funded programs, citing figures from both the Normenkontrollrat (170) and the Ifo Institute (500), as evidence of the current “absurdities”. He proposes a fundamental shift away from individualized case management towards standardized, bundled social benefits managed through a nationwide digital platform. This streamlining, he believes, is critical for both efficiency and public perception.
Beyond social welfare, Steinbrück calls for comprehensive state modernization, emphasizing the need for accelerated digital transformation, significant bureaucratic reduction and improved regulatory frameworks to bolster economic competitiveness, alongside infrastructural upgrades and amplified investment in education. He describes the need to “renovate the engine room of our state.
Karsten Wildberger, Germany’s first Digital Minister, lauded Steinbrück’s vision as “a significant enrichment for the cabinet” acknowledging the ambition of proposals currently being developed in conjunction with regional governments. However, Steinbrück criticizes the current governing coalition of the Christian Democratic Union (CDU) and SPD for a perceived lack of resilience. He accuses the government of yielding too readily to the “loud outrage of individual groups” hindering decisive action and strategic direction.
Despite his criticism, Steinbrück insists on the coalition’s vital importance, stating that Germany’s collective interest demands its success – a bulwark against a growing erosion of faith in the government’s capacity to function effectively, which he warns could lead to a serious democratic deficit. He places particular responsibility on Chancellor Merz, asserting, “We cannot conjure up another chancellor; it must be led from the front.
Steinbrück also decried the pervasive negativity surrounding Germany’s economic prospects, dismissing the trend of public pronouncements of relocation and decline. He emphasizes the nation’s enduring strengths: a highly skilled workforce, a robust industrial and technological base, a thriving research landscape and a commitment to the rule of law, underpinned by a strong social partnership. His warning is clear: the constant negativity risks pushing the country towards an avoidable precipice.
