Government spending on social services remains stagnant in relation to the country's overall economic output

Evading during Periods of Struggle or Hardship

, and Administrator

2025 September 13 . 8:34 AM

2 min read

Government spending on social services remains stagnant relative to the overall growth of the... — Government spending on social services remains stagnant relative to the overall growth of the economy

In a recent debate, Dietmar Bartsch, the former Left Party faction leader, has taken issue with Friedrich Merz's statement that the current social state is not financially viable in relation to Germany's economic output.

According to official statistics, while absolute state spending on social security has increased significantly, so has Germany's GDP. From €2.13 trillion in 2000 to €4.33 trillion in 2024, Germany's GDP more than doubled during this period.

Bartsch argues that Merz's claim is false. He contends that it is not the social state, but rather Germany's military policy, that is causing the budget to burst.

To support his argument, Bartsch has requested data from the Federal Statistical Office regarding social spending as a percentage of GDP. According to the Office, social spending as a percentage of GDP was 5.53% in 2024, compared to 5.64% in 2015 and 5.63% in 2000.

When discussing the "social state," people often include services paid for with tax money, social insurance for retirement, health, and care. If you add up all public, mandatory, and voluntary spending on social issues, it reaches around 30% of GDP, as calculated by the Hans-Boeckler Foundation in 2024.

State spending on healthcare as a percentage of GDP has remained roughly the same since 2000, at 0.21% in 2000 and 0.20% in 2024, with slight decreases in 2010 and 2015. On the other hand, state spending on education as a percentage of GDP has consistently increased, from 0.25% in 2000 to 0.52% in 2024.

Bartsch views the debate about the affordability of the social state critically and warns against cuts. He labels Merz's claim as a "de facto campaign of lies against the social state."

It's important to note that these social systems are mostly funded by contributions from employees and employers, with some state subsidies. Bartsch's message to the federal government is clear: to keep their hands off the social state.

In conclusion, while absolute spending on social security has increased, so has Germany's GDP. Social spending as a percentage of GDP has remained relatively stable, with increases in spending on education offset by decreases in healthcare spending. Bartsch's analysis suggests that the military policy, not the social state, is the main factor causing budgetary strain.