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Germany Launches Social-State Commission to Streamline Tax-Funded Benefits by Year’s End

The panel responds to rising welfare costs, starting in September with a year-end report to guide measures from 2026.

Bärbel Bas
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Die Merz-Regierung plant eine umfassende Reform des Sozialstaates ab Anfang 2026.

Overview

  • The new commission brings together representatives of the federal government, the Länder and municipalities and will also consult social and economic associations, the Bundesrechnungshof and the Normenkontrollrat.
  • Work begins in September with a final report due by the end of 2025 to feed into ministerial action plans.
  • The mandate targets tax-financed programs such as Bürgergeld, Wohngeld and Kinderzuschlag for potential redesign.
  • Reform directions under review include consolidating overlapping benefits, speeding administrative procedures and expanding digital applications to simplify access.
  • Responsible ministries are slated to begin implementing concrete proposals from early 2026, while specific measures reported elsewhere, such as full benefit mergers and a single portal, have not been confirmed by the ministry.