Schnitzer urges reforms within Germany’s social insurance system

(de-news.net) – Amid growing concerns over the sustainability of Germany’s social insurance infrastructure, Monika Schnitzer, Chair of the German Council of Economic Experts, has called upon the federal government to initiate comprehensive reforms. She emphasized that the current model, which relies heavily on contributions from the working population to finance pension obligations, is increasingly untenable and warned of an impending systemic collapse should corrective measures not be taken.

While acknowledging incremental progress by the governing coalition on broader economic issues, Schnitzer noted the absence of substantive policy shifts in the domains of pension and long-term care financing. She advocated for a recalibration of cost-sharing mechanisms, urging that private assets – including real estate – be considered in future funding models to ensure equitable distribution of financial responsibility.

In support of a proposal advanced by the Economic Ministry’s advisory board, Schnitzer endorsed the establishment of dedicated savings schemes for the baby-boomer generation. The initiative aims to promote intergenerational fairness by encouraging individuals to contribute proactively to their future care needs, thereby reducing reliance on public funds. Her remarks underscore the urgency of addressing demographic and fiscal pressures within Germany’s welfare system, and signal a growing consensus among economic experts for bold, forward-looking policy interventions.

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