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German Employers’ Chief Pushes for Sweeping Welfare Reforms as New Government Takes Shape

Rainer Dulger intensifies calls to cap social contributions, overhaul pensions, and introduce a universal service year while rejecting wealth taxes.

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Arbeitgeberpräsident Rainer Dulger.

Overview

  • Rainer Dulger, head of Germany’s employers’ association, urges the incoming CDU-SPD coalition to pursue deeper welfare-state reforms beyond their agreed commission studies.
  • He advocates for capping social contributions at 40 percent and ending early retirement at 63, arguing these measures ensure intergenerational equity and fiscal sustainability.
  • Dulger proposes a universal service year for all young adults, encompassing roles in the military, public services, and healthcare sectors.
  • Rejecting increased wealth taxes, Dulger claims such measures would yield minimal revenue while undermining Germany’s economic competitiveness.
  • While critical of limited welfare reform plans, Dulger praises Chancellor-elect Friedrich Merz’s 100-day agenda as ambitious and solutions-focused.