Get the Party Started: The Social Policy of the Grand Coalition 2013–2017

Abstract

This article analyses social policy during the third grand coalition (in power from 2013 until 2017). Generous and expansionary reforms were implemented during the 18th legislative period. The implementation of these reforms was facilitated by favourable socio-economic and political circumstances, such as low unemployment rates, strong social support for welfare state enlargement and weak opposition parties without a liberal corrective. Through various theoretical approaches to public policy analysis, the occurrence and concrete arrangement of four key decisions are explained: the minimum wage, the rent control law, and the pension and care reform. It is concluded that the grand coalition turned away from liberalisation and deregulation tendencies of the last years and governmental responsibility gained in importance. Thus, state interventions were able to counteract some hitherto existing inequalities and undesirable developments. However, unpopular and extensive structural reforms were not undertaken and the future financial viability of the existing reforms is questionable. Nevertheless, the motto of the present social policy is: let the good times roll.

ABOUT THE AUTHOR

Linda Voigt is a PhD Student and Assistant Lecturer at the Institute of Political Science at the University of Heidelberg. Her research interests include Public Policy Analysis, Political Psychology as well as German and European politics.

Notes

1 Numbers before and after 2009 are not easily comparable because of a new calculation procedure (BMAS 2017, 198).

2 For more about the (in-)activity of the weak opposition see Franzmann (2018).

3 The Bundesrat only voted against two legislative proposals: the law about secure States of origin and an amendment to the Asylum Seekers Benefits Act.

4 The minimum wage is located in the category ‘labour policy’, the pension reform in ‘old-age provision’, the care reform in ‘care policy’, and the rent control law in ‘Further fields of social protection’.

5 A ‘solidary pension’ – which means a financial reinforcement for old-age pensions, financed by tax money, which is paid to those retired persons who cannot cover the cost of living despite long-term employment and contributions to the pension insurance.

6 Through four leading decisions, the German Federal Labour Court decided on details of the minimum wage: in sum, the rights and advantages for those concerned were generally improved – under certain conditions – by the decisions allowing the minimum wage implementation regarding sickness, on-all time, night surcharges, and public holidays.

7 See CDU/CSU-FDP coalition agreement.

8 The rent control law is not yet implemented in Saxony, Saxony-Anhalt, Mecklenburg-Western Pomerania, and Saarland.

9 A proposal of the Greens regarding the rent control law was rejected by the CDU/CSU in June 2013.

10 Europeanisation is not identified as an explanatory factor regarding the rent control law and thus it will not be explained in this section. This also applies to section 3.3.3.

11 In spring 2017, a further amendment was made regarding the reduced-earning-capacity pension in the form of a gradual extension of the credited compensation period by three years up to the age of 65.