Michael Groß, President of the Arbeiterwohlfahrt (AWO), heavily criticized the federal government’s planned social reforms, describing them as mere austerity measures imposed at the expense of low-income individuals. He demanded the reintroduction of wealth taxes, stating that cuts or restrictions to benefits such as parental allowance, child allowance, and housing benefit must be immediately halted. Furthermore, Groß stressed the need to compensate for billions lacking within the long-term care insurance scheme.
Groß criticized the government’s policy for focusing solely on expenditure cuts and maintaining a rigid cost-saving approach. He argued that this approach is fundamentally misguided. He warned that the widespread feeling among citizens of being ignored and undervalued fuels political dissatisfaction and strengthens parties like the AfD.
Regarding financial policy, the AWO chief called for the reintroduction of a wealth tax on assets exceeding a very high threshold, in addition to the consistent enforcement of inheritance tax. Citing calculations from the German Institute for Economic Research, he noted that even a tax rate of 1 percent on 40 billion euros could generate substantial annual tax revenue. Additionally, Groß emphasized that tax evasion and illegal labor must be prosecuted much more rigorously than they currently are, adding that this alone could bring in hundreds of billions of euros.
In terms of governmental procedure, Groß sharply criticized the way the government operates, stating that welfare organizations-including Caritas, Diakonie, and AWO-are barely, or far too late, consulted during the legislative process. “We are experiencing a genuine loss of trust,” he said. He concluded by stating that treating civil philanthropy and social policy solely as a cost factor, rather than recognizing their indispensable contribution to social security and social peace, is completely flawed. He expressed his hope that political decision-makers would take the expertise and ideas of these associations more seriously.
