°°Germany’s Welfare “Puzzle” Reform Scenario °° ° Problem: Current welfare system under financial strain. Native workforce participation stagnating. Rising social spending creates political tension.
°°Germany’s Welfare “Puzzle” Reform Scenario °° ° Problem: Current welfare system under financial strain. Native workforce participation stagnating. Rising social spending creates political tension.
° Merz’s Framing: “We can no longer afford the welfare state.” Opens debate for reforms without committing himself personally.
°° Proposed Mechanism °° Encourage Workforce Participation: Tighten eligibility for benefits, incentives for returning to work. Subsidize training, reskilling and flexible work programs. ° Integrate Immigrants: Selectively admit migrants with skills aligned to labor shortages.
Provide integration programs language, vocational training, social security contributions. Frame newcomers as essential for sustaining social programs without raising taxes.
° Modernize Welfare: Shift from unconditional benefits to participation based support. Promote private savings and investment programs for pensions.
° Outcome (Hypothetical): EU/27+ model: Germany becomes a self-reliant, labor-rich economy. Immigrants act as “reinforcements” sustaining the system. Social instability reduced, economy stabilized. Germany doesn’t rely on external bailouts internal solutions suffice.
° Takeaway: Merz’s framing could pave the way for a participation driven, partly immigrant fueled welfare reform, ensuring the system is sustainable without dramatic tax hikes or relying on external actors. 😀👍