Social cohesion — Germany · Synthesis

Moderate income inequalities. The Gini index of disposable income stands at around 0.30 (OECD/Eurostat), close to the European average and to France, well below the United Kingdom. The socio-fiscal system and social insurance meaningfully reduce market inequalities.

Highly concentrated wealth. While incomes are relatively equal, wealth is more unequally distributed than in several neighbours (DIW/SOEP, ECB), partly because of the low home-ownership rate (see Housing category): many Germans are renters and hold few real-estate assets.

Poverty at the average. The poverty rate (threshold at 60% of median income) stands at around 14-15% (Destatis/Eurostat). The most exposed groups are single-parent families, long-term unemployed and some pensioners, in a context of debate on old-age poverty ("Altersarmut").

A persistent East-West gap. More than three decades after reunification, income, wealth and employment gaps persist between East and West, even if they have narrowed. This gap fuels a sense of marginalisation in some eastern regions, linked to political dynamics (see Trust in institutions category).

A reformed social safety net. The social-assistance system, shaped by the Hartz reforms of the 2000s, was overhauled with the citizen's income ("Bürgergeld", 2023), which raised amounts and changed the accompanying approach — a reform debated in terms of its work incentives.

Old-age poverty. Ageing and pension trends make senior poverty a growing challenge. The sustainability of the pension system and its level are at the heart of the social debate (see Economy category).

Wealth and access to home ownership. The high concentration of wealth and limited access to home ownership raise the question of wealth accumulation for lower-income households, in a nation of renters.

East-West gap and territorial cohesion. Reducing regional disparities and the sense of marginalisation, notably in the East, is a national-cohesion challenge, linked to democratic stability.

Reform of the safety net. The debate on the citizen's income ("Bürgergeld"), between protection and work incentives, structures social policy, in a context of labour shortage (see Labour category).

The open questions. Three issues will shape the period: (1) preventing old-age poverty; (2) reducing wealth concentration; (3) closing the East-West gap and the sense of marginalisation.

Placed in its environment, Germany presents moderate income inequalities but high wealth concentration — a profile distinct from France and the United Kingdom.

Three takeaways. (1) Income: at the average. With a Gini of ≈ 0.30, Germany is close to France (≈ 0.29) and the EU average, below the United Kingdom (≈ 0.35) and Italy (≈ 0.33).

(2) Wealth: more unequal. Wealth concentration is higher than in France, partly because of the low ownership rate — a paradox for a country with relatively equal incomes.

(3) A territorial singularity. The East-West gap, a legacy of reunification, is a dimension of inequality specific to Germany, with no direct equivalent among its neighbours.