THE CHANGING ROLE OF THE STATE IN GERMAN HOUSING AND SOCIAL POLICY

Abstract

This paper discusses recent changes in the role of the German state in relation to welfare and housing and, to a lesser extent, recent state initiatives in tackling homelessness. The analysis leads to the conclusion that some of more radical changes apparent in other European countries are less relevant in the German context because the role of the central state (after the war) was never as strong as in some other countries, and because the German state (including the local state) has traditionally been less important as a direct provider of services and housing. While we can confirm a roll back of the state in the area of housing, recent changes in regard to welfare provision for unemployed and poor people are illustrative of‘regulatory restructuring’and of a‘roll out’of state intervention (Peck and Tickell 2002). At the same time as earnings-related elements of social security systems are being reduced and means-tested benefit systems are gaining in importance, a number of new techniques, sanctions and obligatory measures to promote activation and workfare have been introduced, thereby modernizing, intensifying and individualizing the influence of public administration on unemployed and poor citizens. The reform of the basic-income schemes following on the Hartz Commission recommendations will also lead to significant shifts of financial and administrative responsibilities between central, regional and local levels of the state. The responsibility for bearing the housing costs of long-term unemployed people will no longer be shared by all three state levels but become the sole responsibility of local authorities. However, with constantly shrinking powers to influence supply and allocation of housing, local authorities are not in a good position for taking over this responsibility.