Better Exploiting Employment Potential

Social security systems must be reformed to ensure that they remain financially viable in the face of demographic change. The employment potential on the labor market must be better exploited. Policymakers should promote women’s and mothers’ employment in particular by improving daycare and reforming the system of tax splitting for married couples. To create incentives for employees in the low-income segment, the existing Hartz IV supplementary income regulations must be expanded and the high thresholds for supplementary income reduced.