German federal chancellor Friedrich Merz welcomed the commission’s proposals to reform the welfare state.
“I knew them in broad strokes and they exceed my expectations because they really undertake a fundamental structural reform of the social security systems” he said on Tuesday at the World Economic Forum in Berlin.
Merz explained that the core of the reform is to shift responsibilities to two main actors.
Job centers will handle all those who are able to work, while social offices will take care of those who are unable to work. “The benefits will be bundled, digitised and reordered accordingly” he added.
He stressed that this is primarily a structural change and does not yet alter the level of benefits. The government will tackle any impact on benefit levels after the commission completes its work, expected in the first half of 2026.
Philipp Türmer, head of the Jusos, insists that the proposals must not lead to cuts in the social sector. He warned, “The social protection level must not fall, especially when transfer deduction rates change. It is right to strengthen socially‑contributory work, but people who can no longer work full‑time-such as single mothers-must not be disadvantaged”.
In general, Türmer described the proposals as sensible. “Bundling benefits and paying them automatically means less paperwork and real relief for many. Too many people currently do not receive the benefits they are entitled to because the application process is too complicated” he said.
The commission’s report, covering 26 recommendations over 50 pages, outlines how the application and approval of social benefits could become more efficient, simpler, and digital. The proposals come from representatives of the federal government, the states, and municipal associations.
