The German Association of Cities (Deutscher Städtetag) is urgently calling for comprehensive social reforms to alleviate the escalating financial burden on local municipalities. In a stark warning about the sustainability of current social welfare models, the organization’s CEO, Christian Schuchardt, has proposed a radical overhaul of the long-term care insurance system.
Schuchardt’s proposal centers on transitioning the current care insurance model into a full insurance system, effectively guaranteeing coverage for all citizens regardless of their previous employment history. He argues this change would prevent individuals who have diligently contributed throughout their working lives from being forced into social assistance due to crippling care costs. The financial impact, he estimates, would provide municipalities with an annual relief of over €5 billion.
Currently, local social welfare offices are compelled to provide social assistance to those unable to cover their care expenses, a responsibility that has become increasingly onerous for municipalities already grappling with budget constraints and growing populations. This situation, according to Schuchardt, is creating a precarious balance. Municipal social services are increasingly becoming de facto financiers of the care insurance system, acting as a safety net when the insurance fails. He described the current arrangement as unsustainable, noting that local authorities are effectively “acting as guarantors for the care insurance.
The criticism extends to the federal government’s inaction. Schuchardt expressed disappointment that the Federal Care Commission failed to reach a consensus on more substantial reform proposals, suggesting a lack of political will to address the underlying structural weaknesses within the current system. This impasse, he warns, risks pushing municipalities further into financial distress and potentially eroding the very social safety net they are striving to maintain. The call for reform represents a significant escalation in municipal pressure on national policymakers to address the growing crisis in social care funding.
