Oliver Zander, Chief Executive Officer of Gesamtmetall, warned that a failure to address rising contribution rates could erode business confidence in the current coalition government He highlighted that current expenditure across statutory pension insurance, health insurance, long-term care insurance and unemployment insurance already exceeds 800 billion euros annually, making efficiency improvements crucial A five percent reduction in spending would equate to savings of over 40 billion euros
Zander emphasized the need for a more targeted and efficient social welfare system While acknowledging recent government initiatives addressing energy costs and taxation, he stressed the urgency of cost savings specifically within social security contributions He argued that the current system is excessively expensive due to inherent inefficiencies and a more streamlined approach is paramount for long-term economic stability The organization’s statement underscores a growing concern among business leaders regarding the affordability and sustainability of Germany’s extensive social safety net
