The Berlin government plans to launch the announced reforms in three stages, according to the union party’s parliamentary group leader, Jens Spahn (CDU).
“First” Spahn told “Welt am Sonntag”, “the Finance Commission will present its proposals for statutory health insurance on Monday. We will then move quickly into legislation”.
He added that the next step is to have the key points for the 2027 budget in place by the end of April. That package should include an economic stimulus agenda with tax relief on incomes, reductions in social security contributions, simplification of bureaucracy, and lower energy costs.
The third phase involves the pension commission, which is to report its findings by the end of June. Spahn emphasized that the decision on how to implement those results should follow promptly.
When asked whether the authorities could simultaneously cut taxes and social contributions, Spahn tempered expectations. “Both at once, and on a large scale, is not feasible” he said. “We must prioritize. Reducing social contributions is strongly advocated as a means to boost competitiveness”. His aim is to lower the employer’s wage‑related costs to under 40 percent. “Company decisions on investment hinge on cost levels: while low energy prices are important, wages generally constitute the biggest cost driver”.
Spahn also commented on the enormous fiscal burden of health care for low‑income recipients, which shifts costs onto the payers. “I generally support the idea of financing these costs entirely from tax revenues rather than from contributions” he said. “The reality is that the 12 billion euros will have to be funded through the federal budget, which already faces a sizable deficit. Merely shifting the expenditure will not solve the underlying problem”.
