A senior CDU lawmaker has proposed requiring homeowners to use their housing wealth before receiving state-funded nursing-home support, sparking a political row over social welfare amid Germany’s growing fiscal pressures.
The proposal by Albert Stegemann, deputy chairman of the CDU/CSU parliamentary group in the Bundestag, would tighten eligibility rules for public assistance with nursing-home costs. Under the plan, homeowners could be mandated 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 Thursday.
Germany’s long-term care system operates in 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 these funds are exhausted, state social welfare assistance covers the gap.
Stegemann argues that homeowners should be required to draw on housing wealth before gaining access to taxpayer-funded support.
The proposal coincides with Berlin’s efforts to overhaul 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 unless reforms are adopted.
The debate unfolds against a backdrop of mounting strain on Germany’s welfare model. Europe’s largest economy has endured years of stagnation following energy shocks caused by the Ukraine conflict. Although Germany officially emerged from recession in 2025, growth is forecast at just 0.5% in 2026 after a new Middle East-driven energy crisis further strained its industrial sector.
Germany has committed more than €96 billion in military and civilian aid for Kiev 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 warned that many families fear “losing their home or their life’s work,” calling the idea “absurd.” Opposition Greens accused the government of pursuing socially irresponsible policies.
