Former German Finance Minister Peer Steinbrück has advocated for comprehensive reforms to the country’s social welfare system.
Speaking to Welt am Sonntag, Steinbrück asserted that while Germany’s social security system is a valuable asset, its sustainability hinges on increased efficiency. He pointed to trends in social insurance contributions and the rising costs of state-funded benefits as evidence that reform is essential.
Steinbrück voiced support for the stated intention of Chancellor Friedrich Merz to reassess the federal government’s social policy this autumn, describing it as “correct and necessary” for the Chancellor to personally prioritize the issue. He specifically endorsed proposals to consolidate responsibilities, combine benefits and introduce standardized payments, as well as the digitization of social administration.
The former North Rhine-Westphalia Minister-President and Social Democrat candidate for Chancellor also expressed support for an increase in inheritance tax, as proposed by the SPD. He suggested raising tax-free allowances, implementing installment plans for business assets and dedicating any additional revenue generated exclusively to investment in education, characterizing this approach as “reasonable”.
