Germany's parental leave cuts: a fiscal zero-sum game

Marlen Hobrack scrutinizes the Merz government's proposed cuts to parental allowance (Elterngeld) and maintenance advance (Unterhaltsvorschuss). The maintenance advance costs about three billion euros annually, yet the state recovers only half a billion from liable parents. The government argues the social state is expensive with low return on investment. Ifo Institute chief Clemens Fuest calls parental allowance 'nice to have,' but in late capitalism, nice things are secondary. The proposal would cut parental allowance from 14 months for couples to 12, requiring fathers to take at least three months. In exchange, the minimum monthly amount would rise from 300 euros. The article appears in the current issue of Freitag.