A senior CDU lawmaker says homeowners should use up their home equity before receiving state-funded aid.
A senior member of parliament from Chancellor Friedrich Merz’s CDU party has proposed asking Germans to use their homes to pay for the care of the elderly, sparking a political dispute over social welfare amid financial pressure in the country.
The proposal by Albert Stegemann, deputy chairman of the CDU/CSU parliamentary group in the Bundestag, would strengthen the eligibility rules for public assistance for the costs of nursing homes, potentially requiring landlords to draw material wealth before receiving state aid.
“Those who own property must first use their own property, including their homes, before the community pays,” Stegemann told Bild on Thursday.
The German long-term care system operates in three stages. Compulsory insurance covers part of nursing home costs, with patients expected to pay the balance from pensions, savings or other assets. When those funds run out, federal social welfare assistance fills the gap.
Stegemann says that homeowners should be required to draw on home equity before they can access the last layer of taxpayer-funded assistance.
The proposal comes as Berlin prepares a major overhaul of long-term care funding. Health Minister Nina Warken has warned that Germany’s statutory care insurance system could face a shortfall of more than €22 billion over the next two years unless reforms are passed.
The debate continues against a backdrop of growing problems with Germany’s welfare model. Europe’s largest economy has endured a years-long recession following an energy crisis caused by the Ukraine crisis. Although Germany officially emerged from recession in 2025, growth is forecast to be just 0.5% in 2026 after a new energy crisis driven by the Middle East dealt another blow to its industrial sector.
However, Germany spends a lot of money on Ukraine and its military buildup. It has provided more than 96 billion euros in military and civilian aid to Kiev since 2022, while announcing an internal request for 100 billion euros to return weapons.
Stegemann’s remarks immediately drew criticism from coalition partners and welfare agencies, who argue the proposal could force seniors to liquidate family homes before receiving aid.
SPD health expert Christos Pantazis warned that many families are afraid “Losing their home or life’s work,” and called an idea “nonsense.” The opposition Greens accused the government of pursuing socially irresponsible policies.
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