Schweitzer to implement changes in welfare state and financial system - Schweitzer advocates for changes in the social and economic spheres
In Rhineland-Palatinate, the home of some of Germany's most heavily indebted municipalities, Minister President Alexander Schweitzer has put forth a series of reforms aimed at modernising the social state and finances, with a specific focus on addressing the financial relationship between the federal government, states, and municipalities.
Schweitzer's reform agenda includes modernising the social state and administration, improving the fiscal interplay between federal, state, and municipal levels, and enforcing the congruence principle, known as the "Konnexitätsprinzip." This principle, if implemented, would ensure that when the federal or state governments mandate tasks affecting municipalities, the costs must be borne by the ordering level. A decision on this principle is expected by December 2025 at the Ministerpräsidentenkonferenz (MPK) meeting with the Federal Chancellor.
One of the key issues Schweitzer is addressing is the rising social costs for municipalities, which are increasing sharply due to federal laws on integration, social welfare, and citizen's money (Bürgergeld). He insists that the federal government must support municipalities to mitigate these rising costs.
Another issue is the old municipal debts, known as "Altschulden," which remain a heavy burden for Rhineland-Palatinate. Around half of the €3 billion in old debts have already been taken over by the state, but Schweitzer argues that the federal government still owes a clear debt relief agreement to states and municipalities as promised in the coalition contract.
In addition to these long-term measures, Schweitzer has announced a €600 million emergency assistance program for municipalities, though this has been criticized as insufficient to solve structural underfunding and avoid continued municipal debt accumulation.
Schweitzer also emphasised the need for fair burden-sharing agreements with the federal government for the impact of tax reliefs on municipalities. He referenced the "Investitionsbooster" program, which promotes private investment but initially caused revenue shortfalls for municipalities mainly through reduced trade tax revenue. The state insists on compensations to maintain municipal financial stability.
Schweitzer's reforms are critical as many municipalities in Rhineland-Palatinate face severe financial distress and structural deficits. He has stated that healthy, working-age people without qualifications should be offered a binding job with qualifications, and that the best unemployment benefit is the one that is not paid out because people go to work.
In October, Rhineland-Palatinate will take over the MPK chairmanship from Saxony. During this period, Schweitzer will focus on modernising the state and administration, financial relationships, and the social state. He has warned that the social state relies on the acceptance of those who pay for it, and that there is a need for labor and skilled workers in many sectors.
Schweitzer served as the Minister of Labor and Social Affairs before becoming Minister President. He has also noted that there are people in every generation who live for years without work, despite being capable of working, and that the weakness of the social state lies in its inability to achieve its own goals.
Sources: [1] [Link to source 1] [2] [Link to source 2] [3] [Link to source 3]
- The reforms proposed by Minister President Alexander Schweitzer in Rhineland-Palatinate include revising the employment policy, as he believes that healthy, working-age individuals without qualifications should be offered a binding job with qualifications, to address long-term unemployment.
- In the discussion of policy and legislation, Schweitzer has highlighted the need for fair financial relationships between the federal government, states, and municipalities, with specific emphasis on the Congruence Principle (Konnexitätsprinzip), which determines cost allocation for tasks mandated by higher levels of government.
- In a broader business context, Schweitzer has advocated for political measures to support municipalities facing rising social costs due to federal integration, social welfare, and citizen's money (Bürgergeld) laws, as well as addressing the legacy debts (Altschulden) that continue to burden Rhineland-Palatinate.
