As of: February 16, 2024, 9:40 a.m
By: Robert Wallenhauer
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Does Germany pay too many social benefits?
Did the welfare state expand too much during the economically successful period?
A new study provides answers.
Berlin - It's bad news.
The German economy is not getting anywhere this year either.
The federal government only expects mini-growth of 0.2 percent for 2024. Last year, the German economy even slipped into recession and the government was in acute financial trouble.
No wonder, then, that there is debate about whether the Federal Republic can still afford its welfare state.
At the end of last year, opposition leader Friedirch Merz (CDU) proposed cuts to citizens' benefits and basic child welfare.
“Everything is no longer possible,” complained the Union politician.
A new study is now examining how the German welfare state has developed over the past, economically successful years - and whether this development has led to an inflated welfare state.
Sebastian Dullien and Katja Rietzler evaluated data from the industrialized countries organization OECD and the EU Commission for the trade union-affiliated Institute for Macroeconomics and Business Cycle Research (IMK).
Reichstag building: Has Germany overdone its social benefits?
© Wirestock/Imago
Germany's public social spending is not bloated
The first variable examined: the change in public social spending.
In Germany they rose by 26 percent from 2002 to 2022, adjusted for inflation.
This means that the Federal Republic is relatively far behind in an international comparison.
Only the Netherlands and Greece recorded smaller increases at 9 and 17 percent.
All other industrialized countries compared spent more.
From 2000 to 2019, US public social spending grew by 83 percent and the UK by 59 percent.
New Zealand led the way with an increase of 136 percent.
However, these changes are only of limited significance.
That is why the IMK researchers also examined social spending in relation to gross domestic product (GDP).
When it comes to public social spending, Germany will be in the upper midfield in 2022 with a share of 26.7 percent.
France's spending on public social spending amounts to 31.6 percent of its own GDP.
Too many public sector employees?
The research team also examined the development of Germany's government quota - i.e. the share of public spending in GDP.
Before Corona, this was even lower than after reunification, reports
Spiegel
.
There were only upward swings in 2009 and 2010 because of the financial crisis and in 2020 because of the corona crisis.
In comparison with the government quotas in the euro area, no inflation can be observed here, writes the magazine.
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The last factor analyzed is civil service.
“It is also often pointed out that public employment in Germany has increased noticeably,” says the researchers in a comment.
“Some people even claim that the state is taking employees away from companies.” In fact, the proportion of public sector employees of all employees in Germany was 10.63 percent in 2019.
The average for the OECD industrialized countries was 17.91 percent in the same year.
The absolute number of people employed in the public sector has increased compared to the beginning of the decade.
However, the overall population also grew during this period, which increased the need for teachers, educators and nursing staff.
The IMK researchers' conclusion: "Current public debates often give the impression that social spending in Germany has exploded in recent years and that the state has been bloated beyond measure." However, a closer look at the statistics shows: "This impression is of Facts not covered.”