Overview

• Germany’s cabinet approved its 2026 budget allocating €520.5 billion largely through record new borrowing after deferring structural reforms until 2027.
• The budget earmarks a €127.8 billion federal subsidy for pension insurance — its largest single line — set to increase through 2029 as baby boomers retire.
• VdK President Verena Bentele warns that an unresolved €5.2 billion shortfall in long-term care insurance could lead to class-action lawsuits for constitutional breaches.
• GKV head Oliver Blatt says the government has neglected to reimburse health insurers for the costs of Bürgergeld recipients, deepening deficit pressures.
• Critics from social associations, insurers and economists say deferred funding reforms deepen generational inequities and heighten pressure for systemic change.