Overview

• The Federal Statistical Office reported on Sept. 4 that federal social-security spending amounted to 5.53% of GDP in 2024, compared with 5.64% in 2015.
• In cash terms, total social expenditures reached roughly €1.345 trillion in 2024, equating to just over 30% of economic output.
• Pensions and health insurance drive most costs, while Bürgergeld accounted for 4.2% of the social budget and pension subsidies made up about 18.5% of the federal budget.
• Merz has argued the current system is no longer financeable and signaled cuts, a stance rejected by Left party lawmaker Dietmar Bartsch and SPD minister Bärbel Bas.
• Economist Martin Werding says the welfare state remains financeable but faces intensifying pressure from demographics and health‑insurance deficits.