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Coalition Agrees to Boost Care Insurance Loan to €3.2 Billion to Hold 2026 Rates

The plan uses a repayable federal loan outside the debt brake.

Overview

  • Union and SPD negotiated an extra €1.7 billion, raising the planned federal loan for the statutory long-term care insurance from €1.5 billion to €3.2 billion.
  • The top-up is intended to keep the contribution rate stable in 2026, with reporting citing the current rate at 3.6 percent.
  • The additional financing is designed to cover an expected 2026 shortfall estimated at roughly €1.7 to €2.0 billion.
  • A Vorlage outlining the increase was submitted shortly before the Budget Committee’s wrap-up session, with a vote scheduled for the night to Friday.
  • Green budget spokeswoman Paula Piechotta condemned the late submission as a rush job, while the government classifies the loan as a financial transaction that must be repaid and therefore does not count against the debt brake.