German President Frank-Walter Steinmeier has called on the federal government to undertake deep social reforms, emphasizing the need to make the welfare system more efficient and citizen-friendly. Speaking at the 83rd German Welfare Day in Erfurt, Steinmeier said, “It is imperative that we now act quickly and decisively to make the social state more efficient and accessible to citizens. What we need now is bold policy that recognizes its responsibility.”
Steinmeier highlighted the necessity of addressing misallocations, improving the precision of social transfers, and combating misuse. He also stressed that better cooperation among social agencies and digitization of administrative processes are long overdue. “The social state is a treasure,” Steinmeier said. “Let us reform it to preserve prosperity, solidarity, and cohesion.”
In his speech, Steinmeier addressed the federal government, made up of the CDU/CSU and his own party, the SPD. " Dear coalition: This is not about party tactics or polls. It's about our country! It's about the difficult balancing of interests and making wise decisions on the matter. You must live up to this responsibility!"
The president referred to past social reforms in German history without specifically mentioning former Chancellor Gerhard Schröder’s Agenda 2010, noting,“We have shown time and again in the history of the Federal Republic that we are capable of reform,” said Steinmeier, who served as Minister of the Federal Chancellery under Schröder for six years.
Germany is now once again “at a point where reforms are necessary,” Steinmeier emphasized. “The system is groaning under the strain. We are – once again – being called upon to make the welfare state fit for the future.” “Trust in justice and fairness” must be restored.
The welfare state thrives on the fact that “people are not left alone to face the hardships of life,” said Steinmeier. “But it also thrives on fairness, on everyone contributing what they can, and on their contributions not being exploited by those who do not actually need them.”
He went on to say: “Benefit recipients must also have an interest in ensuring that those who finance these benefits through taxes and contributions are not overburdened.” Where, as in the case of citizen's benefit (bürgergeld), “costs are spiraling out of control,” “countermeasures must be taken.” If benefit recipients are able to work, “we must do everything we can to get them into work.”
However, the Federal President urged caution in implementing reforms. “Let's be prudent. Social welfare reform cannot be achieved with a chainsaw.” Reforms are feasible “if they are fair and humane.” CDU Secretary-General Carsten Linnemann supported Steinmeier, saying, “The president is right: we must make the welfare state future-proof, eliminate wrong incentives, and combat misuse. Courage is needed to make difficult decisions. The public sees the need for action, and the window for reforms is wider than in 20 years. We must act now.”
The CDU-SPD government has pledged to modernize the welfare system amid tight budget constraints, though the coalition remains divided on the specifics. Chancellor Friedrich Merz (CDU) has called for streamlining the welfare state due to economic limits, while the SPD opposes severe cuts. Social Minister Bärbel Bas (SPD) has established a commission to propose modernization and de-bureaucratization measures by year-end, with separate commissions focusing on health, care, and pensions.
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