Governmental spending on social programs as a proportion of the nation's GDP has not surpassed levels seen over the past decade.

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In a recent statement, Federal Chancellor Friedrich Merz expressed concerns about the financial viability of Germany's social state with current economic capabilities. However, a closer look at the numbers suggests a different picture.

The social state, which encompasses services paid for by the state with tax money, as well as social insurance for pensions, health, or care, has seen a fluctuating trend in terms of its share of the GDP over the years. In 2000, social spending accounted for 5.63% of the GDP. This figure remained fairly consistent, with the federal government allocating 5.64% of the GDP for social security in 2015.

However, the GDP itself has grown significantly over this period. In 2000, the GDP stood at 2.13 trillion euros, a figure that has more than doubled to 4.33 trillion euros last year. This growth in the economy has, to some extent, offset the increase in social spending as a percentage of the GDP.

One area where social spending has seen consistent growth is education. In 2000, the state spent 0.25% of the GDP on education. By 2024, this figure had increased to 0.52%.

Social insurance for pensions, health, or care is partly subsidized by the state but is mainly financed by contributions from employees and employers. The total sum of public, mandatory, and voluntary social spending in 2024 was approximately 30% of the GDP, according to the Hans-Böckler Foundation. This figure was lower in 2010 and 2015, at around 29% of the GDP.

The black-red government coalition is currently debating reforms to social spending. However, no new information has been provided about the ongoing debate or the statements made by Friedrich Merz and Dietmar Bartsch, the former Left Party parliamentary group leader who criticized Merz's statement, calling it a "factual campaign against the social state."

It's worth noting that state spending on healthcare has remained relatively stable over the years. In 2000, state spending on healthcare was 0.21% of the GDP. This figure dropped to 0.19% in 2010 and 2015, and then rose slightly to 0.20% in 2024.

In response to a request from Left Party MP Dietmar Bartsch, the Federal Statistical Office provided these figures. Bartsch subsequently stated that Merz's claim that we can no longer afford the social state is false. Instead, Bartsch argued that rearmament policy, not the social state, is bursting the budget.

In conclusion, while there are ongoing debates about the future of social spending in Germany, the numbers suggest that the social state is not, as Merz claimed, financially unsustainable. The growth in the economy over the past two decades has helped offset increases in social spending, and certain areas, such as education, have seen consistent growth. However, the ongoing debate about social spending reforms is an important conversation for the future of Germany's social state.

Governmental spending on social programs as a proportion of the nation's GDP has not surpassed levels seen over the past decade.

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Governmental spending on social programs as a proportion of the nation's GDP has not surpassed levels seen over the past decade.