German social spending steady since 2000 amid 'unaffordable' claims

Germany's spending on social welfare has remained broadly stable in relation to economic output over the past 25 years, official data showed on Thursday, following claims from Chancellor Friedrich Merz that the welfare state has become unaffordable.

According to the Federal Statistical Office, the government spent 5.53% of gross domestic product (GDP) on social security in 2024, compared with 5.64% in 2015 and 5.63% in 2000.

Spending rose considerably in absolute terms, but so did GDP, which doubled from €2.13 trillion in 2000 to €4.33 trillion in 2023.

The figures were requested by lawmaker Dietmar Bartsch from the opposition The Left amid debate within Merz's coalition over the affordability of welfare programmes.

Health-related federal spending has also remained roughly steady, at 0.2% of GDP in 2024 versus 0.21% in 2000.

According to the statistics, the share of GDP spent by the state on education has risen steadily, from 0.25% in 2000 to 0.52% in 2024.

Bartsch accused Merz of waging what he called a "campaign of lies" after the chancellor last week said Germany's welfare state was no longer financially sustainable.

"The claim that we can no longer afford it is false," Bartsch said, arguing that higher defence spending, not social welfare, was straining the budget.

The term "welfare state" often refers not only to benefits financed directly by tax revenues, such as the "citizen's benefit" system of basic income support, but also to social insurance systems for pensions, health care, and long-term care.

These receive some government subsidies but are largely funded through contributions from employees and employers.