Economy demands additional reductions in pension benefits and healthcare services

In the heart of Germany's political landscape, Labor Minister Barbara Bas (SPD) has introduced a bill aimed at the long-term stabilization of pensions in the federal cabinet. However, the proposal has sparked a wave of criticism from the German Industry and Commerce Chamber (DIHK), with its president, Peter Adrian, expressing concerns about the potential impact on corporate taxes and social contributions.

Adrian fears that the planned reduction in corporate taxes from 2028 may ultimately be in vain if tax increases occur due to the subsidies from the federal budget into pension, health, and long-term care insurance. He emphasizes that these issues need to be addressed "as soon as possible" in the fall to prevent further rises in contributions and taxes.

The DIHK has been vocal about the need for sensible limitations on benefits to prevent such increases. Adrian believes that long-term care insurance was not intended to provide subsidies for slight needs for assistance. He suggests that those who can afford it should pay more co-payments in the statutory health insurance.

The DIHK's calls for reform have been met with much criticism, with the bill receiving much criticism and the question of whether the reform is "heading in the wrong direction." Despite this, Adrian maintains that there is "too little concrete reform will" from the federal government overall.

In a recent business climate survey by the DIHK, more companies than ever described high labor costs as one of their biggest business risks. Social contributions in Germany are already significantly above 40 percent and are expected to continue rising.

The DIHK chief, Peter Adrian, emphasizes the need for more personal responsibility in social security. He believes that the state cannot cover every form of care need completely and that individuals should take more responsibility for their own wellbeing.

As the parliamentary summer recess for politics in Germany ends at the end of August, further decisions are pending after the recess. The DIHK has not released a detailed plan specifically about reducing pensions and care services in Germany, nor is there information on when such a plan would be implemented.

The lack of reform in this area generates "distrust and disappointment in the economy." As the debate continues, it remains to be seen how the German government will address the concerns raised by the DIHK and whether the proposed pension stabilization bill will be revised in light of these criticisms.