German Government Reaffirms €7.5 Billion Savings Target Amid Nursing Care Reform Talks

On June 10, 2026, the German coalition government held crucial discussions with economic associations and trade unions at the Chancellery, aiming to advance its ongoing nursing care reform efforts. These talks come as final negotiations are underway to achieve the government's target savings of €7.5 billion for the next year, with plans to continue similar savings in subsequent years.

Thorsten Frei, head of the Chancellery and CDU member, defended the ambitious savings goal despite criticism of the nursing reform draft. He emphasized the necessity of balancing the interests of those needing nursing insurance and those funding it. Frei noted that many specific details remain unresolved, including who will bear increased costs, the level of benefits, and the involvement of pension insurance for caregivers. He clarified that nursing insurance functions as a partial insurance scheme, which brings particular challenges.

The government's strategy includes involving both employers and employees, fostering collaboration with social partners during this pivotal stage of the reform process. As negotiations continue, the parliamentary procedures will allow for detailed debates on the reform’s finer points.

These developments underscore the German government's commitment to reforming nursing care financing while managing the delicate balance between social protection and fiscal responsibility.