Overview

• Government leaders are concentrating on Bürgergeld changes, targeting Eckpunkte by year-end and a potential bill in 2026, while commissions prepare proposals for health, pension and long-term care.
• Chancellor Friedrich Merz shifted within days from warning that Germany lives beyond its means to stressing the welfare state will be preserved and reformed.
• Official data show statutory health insurance spending rose about 8% in H1 2025, with hospital treatment costs up nearly 10%.
• Economists project that rising health and care outlays could push total social contributions above 43% of wages around the turn of 2025/2026.
• More than three million people are officially unemployed and roughly 5.5 million receive Bürgergeld, while forecasters trim growth outlooks and bond-market volatility signals investor concern.