Family Policy

The state subsidises families to the tune of some 170 bn euros annually, paying for the children’s health insurance, maintaining schools and kindergartens, transferring child and parental benefits. Despite this considerable sum there are significantly fewer births in Germany than in other countries: an average of 1.4 births for every woman, too few to maintain the population at its current level. Well qualified women with interesting jobs are especially likely to forego having children because of the difficulty in this country of combining a family with a career.

Given a greater number of crèches, kindergartens and schools, more couples could fulfil their wish to start a family without having to abandon their careers for several years. Initially, the state would have to provide more money for investments in day care infrastructure, but in the long term it would gain. Fathers and mothers who go to work pay more taxes and social insurance contributions. Moreover, the earlier children start learning, the better educated the population as a whole will eventually become. With better qualifications, there is also less risk of them becoming unemployed and dependent on public assistance.