There is growing resistance within politics and among economists against the planned reform of the federal parental allowance (Elterngeld) proposed by the federal government.
Jasmina Hostert, the SPD’s parliamentary spokesperson for family policy, argued that stable and reliable support is needed for families precisely now, stating that she rejects any cuts to support for children and families. Similarly, Elke Hannack, deputy chairwoman of the DGB union, sharply criticized the plan, suggesting that anyone considering reducing the parental allowance has misunderstood the current social climate and is acting against the coalition’s promises to prioritize families and strengthen women’s equal participation.
Experts also voiced strong objections. Wido Geis-Thöne from the Institute of the German Economy (IW) noted that, at the current level, there are few significant sources of savings within the parental allowance system without fundamentally changing its nature. Similarly, Katharina Wrohlich, a DIW economist, warned that given the decline in birth rates, cutting funding from one of the central family policies would send the wrong signal. The German government’s cabinet decision to reform the parental allowance stems from the desire for the state to save 500 million euros within the budget allocated to the federal ministry for family.
In response, the CDU’s Minister for Family, Karin Prien, is slated to spearhead the reduction measures. However, members of the CDU opposition suggest that cuts should instead target other parts of the family budget, such as the project funding managed by the Ministry. Anne König, the CDU parliamentary spokesperson for family policy, suggested that these project subsidies could be reviewed instead of cutting the parental allowance.
These concerns follow a period of public protest sparked last year when the former Minister for Family, Lisa Paus (The Greens), cut funds related to the parental allowance.
