Investing in children: Social infrastructure needs urgent reforms!

Investing in children: Social infrastructure needs urgent reforms!

On June 26, 2025, numerous associations are calling for more investment in the social infrastructure for children and families. A broad alliance of 49 civil organizations, including the social association VdK, the German Federation of Trade Unions as well as Diakonie Deutschland and the German Children's Fund, criticizes the federal government's current budget plans. [Tagesschau] reports that investments in the youngest are seen as a key to future social stability and prosperity.

The associations' demands aim to create long-term benefits for growth, reduced poverty and increased social cohesion. Nevertheless, these efforts face major challenges. The problems range from a lack of skilled workers to unreliable childcare times and dilapidated school toilets, which limit the development of many children. It is emphasized that many children in Germany are denied a “real chance for development”.

Budgets and necessary cooperation

The Federal Cabinet under Finance Minister Lars Klingbeil (SPD) has approved the budget plans for 2025 with planned spending totaling 503 billion euros, which corresponds to an increase of around 6% compared to the previous year. The focus of this spending is primarily on defense policy and the rehabilitation of dilapidated infrastructure. However, only 6.5 billion euros are available for daycare centers and digital education from a special fund of 500 billion euros, which is to be used sensibly over a period of ten years.

Experts are calling for the necessary cooperation between the federal government, states and local authorities in order to create financial flexibility that makes it possible to implement appropriate offers such as advice and leisure activities as well as remedial lessons.

Securing skilled workers and labor market analyses

At the same time, the Federal Ministry of Labor and Social Affairs' skilled worker monitoring examines developments on the labor market and the challenges for the coming years. This monitoring analyzes the labor market flows of supply and demand up to 2028 and estimates unused potential among women, non-Germans and older workers to secure skilled workers. [BMAS] emphasizes that the medium-term forecast takes into account demographic change and other influences such as digitalization and geopolitical conflicts in order to identify shortage occupations.

Over the next five years, 618,000 people without educational qualifications are expected to enter the labor market, while only 396,000 helper positions are available. These developments illustrate the urgency of tapping potential skilled workers and shaping structural change accordingly. Particular attention is paid to the high dropout rates in educational institutions, especially among people of foreign origin.

Household consumption is identified as the main driver of economic growth, with investments in renewable energy and a circular economy seen as potential drivers for the future. However, it is also noted that high construction prices and interest rates are limiting the construction industry's growth prospects.