German social spending reaches 751 billion euros

Germany currently spends 751 billion euros on social benefits. Spending is rising particularly for unemployment benefit I, care allowances and social assistance.

The Federal Statistical Office has released the latest figures. According to the data, the level of benefits depends on the labour market situation, employment participation, inflation and demographic developments.

Spending is growing particularly strongly on unemployment benefit I, care allowances and social assistance. In contrast, costs for one other benefit are declining slightly.

The authority stresses that political decisions explain only part of the trend. Economic and social factors also play a role.

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German cabinet meeting finalizing 2027 health reform draft with 16.3 billion euro savings target.
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German government finalizes 2027 health reform draft with 16.3 billion euro savings target

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Following Chancellor Merz's announcement that the bill was practically ready, the German government finalized its health reform draft on April 28, targeting 16.3 billion euros in savings from 2027—down from an initial 19.6 billion—to address a 15.3 billion euro deficit at statutory health insurers. The Greens decry it as a burden on insured people and companies, while Health Minister Nina Warken calls it balanced. Cabinet approval is set for Wednesday.

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German Finance Minister Lars Klingbeil (SPD) detailed specific savings targets for the 2027 federal budget at a press conference in Berlin. The measures aim to close a 111 billion euro financing gap. The largest cuts target pensions at four billion euros.

Salvador Illa's government has submitted a budget project to parliament with record spending of 49.162 million euros for 2026, plus 893 million euros extra from agreements with ERC and the Comuns.

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