(de-news.net) – In the ongoing discourse surrounding the restructuring of Germany’s welfare state, the employers’ association Gesamtmetall has formally urged the federal government to prevent further increases in social contributions. Oliver Zander, Chief Executive of the association, cautioned that failing to curb rising costs could erode economic confidence. He emphasized that the governing coalition must ensure the total social insurance contribution does not rise beyond its current level as of January 2026. To achieve this objective, Zander proposed a uniform 5% reduction across all categories of social expenditure.

Germany currently allocates over 800 billion euros annually to statutory pensions, health insurance, long-term care, and unemployment benefits. A 5% reduction would equate to savings exceeding €40 billion. Zander criticized the inefficiency of the existing system, asserting that despite progress in areas such as taxation and energy costs, substantial cost reductions are urgently required within labor-related social insurance.

Ahead of the inaugural session of the Social State Reform Commission, Gesamtmetall reiterated its concerns regarding Germany’s prolonged economic downturn. Jens Wohlfeil, Head of Labor and Social Policy at the association, noted that social expenditure continues to escalate, reaching an unprecedented 1.3 trillion euros in 2024 — approximately one-third of the nation’s gross domestic product. He argued that without comprehensive reforms aimed at reducing costs and enhancing efficiency, the economic crisis would persist.

The association welcomed the commission’s mandate to evaluate the effectiveness of all welfare services and to develop actionable recommendations. Wohlfeil underscored that economic stability is a prerequisite for political stability, and warned that superficial adjustments would be insufficient to preserve and modernize the welfare state.