Germany must rethink civil-service privileges

Germany’s civil-service system faces a pointed challenge from the country’s finances. Berlin must set aside at least 1.2 billion euros for back payments to civil servants, while the city already spends 13 billion euros a year on personnel.

The cost reflects a broader system covering around two million civil servants, judges and soldiers. They do not pay contributions to pension, unemployment or long-term care insurance. Their employers cover much of their healthcare costs, dismissals are highly restricted and their pensions are based on their final salary.

The commentary questions whether the historic bargain behind civil-service status still fits modern Germany. Public employees traditionally offered loyalty to the state and gave up the right to strike in exchange for moderate but lifelong financial security. The argument presented is that the state can increasingly afford that arrangement only with difficulty.

The Berlin back payment alone would equal about 2.6% of the city’s budget. The text compares that sum with the potential cost of 630 modern subway cars or 24 new schools.

The Federal Constitutional Court ruled last year that civil-service pay had been too low for years. It based the required increases on the state’s special duty of care, which is intended to protect civil servants from “existential financial worries.” The ruling affects not only Berlin but also several German states and the federal government. Interior Minister Alexander Dobrindt has estimated an additional annual burden of 3.5 billion euros.

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existential financial worries