A leading figure in Germany’s parliamentary CDU/CSU faction is advocating for increased federal funding to stabilize contributions to the long-term care insurance system. Jens Spahn, head of the faction, asserts that a two billion euro increase in federal subsidies is necessary to prevent contribution hikes set to take effect in January.
Speaking to Focus magazine, Spahn emphasized this is a critical point in the current budget negotiations. He contends that without the additional funding, contributions could rise by as much as 4.2 percent.
Spahn acknowledged that securing this increase within the governing coalition is still an ongoing debate. He further warned that Germany’s overall social contributions already represent a significant 42.5 percent of income and that placing further financial burdens on employees and employers through increased care insurance contributions would be unsustainable. The current funding gap in the care insurance system, he argues, necessitates federal intervention to avoid additional strains on the workforce and businesses.
