A senior CDU lawmaker has proposed requiring German homeowners to use their property wealth before qualifying for state-funded nursing-home support, triggering a political row over social welfare amid the country’s mounting fiscal pressures.
Albert Stegemann, deputy chairman of the CDU/CSU parliamentary group in the Bundestag, stated on Thursday that those who own assets must first utilize their home value prior to accessing taxpayer-funded assistance for long-term care costs.
Germany’s long-term care system operates through three stages: mandatory insurance covers part of nursing-home expenses. Patients are expected to pay the remainder from their pension, savings or other assets. If these funds are exhausted, state social welfare programs cover the gap.
Stegemann argues that homeowners should be required to draw on housing wealth before gaining access to that final layer of taxpayer-funded support.
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.
This debate unfolds against a backdrop of economic strain on Germany, which has endured years of stagnation following energy disruptions caused by the Ukraine conflict and subsequent global crises. Although Germany officially emerged from recession in 2025, growth forecasts for 2026 stand at just 0.5% due to a new Middle East-driven energy crisis.
The government has also committed over €96 billion in military aid to Ukraine since 2022 and announced a domestic €100 billion rearmament drive.
Stegemann’s remarks immediately drew criticism from coalition partners and welfare organizations, who argue the proposal could effectively force elderly people to liquidate family homes before receiving assistance. SPD health expert Christos Pantazis described the idea as “absurd,” while the Greens accused the government of pursuing socially irresponsible policies.