Federal government report: Is life equally good everywhere? Traffic light sees progress

Robert Habeck has his famous display boards with him again. The Federal Minister of Economics holds up one piece of cardboard after the other as he presents the “Equivalence Report 2024”. The message: things are looking up, economically weaker regions are catching up, living conditions in Germany are becoming more equal. “The report tells a story of positive upward convergence,” says the Green politician. That is one side of the story. But the report also tells another story: that of dissatisfaction, grumbling and fears about the future in the country.

The federal government has compiled all possible data on more than 220 pages to filter out differences and similarities between city and country, between strong regions and weaker ones, between East and West. The Basic Law contains the commandment to “establish equal living conditions”. In addition, 31,000 interviews were conducted to find out how people themselves assess the situation. Both together are “really important” and “reading material for the summer holidays”, says Habeck. “I really think this is a crucial compendium on the question of how Germany is doing.” This could also be used to recalibrate funding policy.

According to the government, 27 out of 38 categories are improving

Economy, society, infrastructure, climate and environment: In these fields, the report compares a total of 38 “equivalence indicators”. These include municipal tax revenue, unemployment rate, number of crimes, birth rate and life expectancy, accessibility to the nearest supermarket and the proportion of forest area in the total area of ​​the 400 districts and independent cities.

According to the government, the ratios are converging in 27 of the 38 categories, while the trend is not clear in four others. In seven categories, the ratios are diverging. This includes the proportion of skilled workers and experts among employees subject to social insurance contributions. The differences are also growing in residential building density, the ratio of children to daycare places, the proportion of single-person households and the old-age dependency ratio. Habeck stresses that demographic change is a particular cause for concern. In other words, regions with shrinking populations are facing major challenges.

People still have some complaints

The survey section of the report then shows that people assess the situation quite differently and are particularly critical of the infrastructure. “Transport connections and mobility options are rated as good by only 44 percent, followed by digital infrastructure with 38 percent,” it says, for example. “In terms of the establishment and founding of new companies, only 35 percent of respondents rate the situation as good.”

The question then continues with the possibility of finding affordable housing: “More than eight out of ten respondents find this very (42 percent) or rather difficult (41 percent).” In large cities, this is viewed much more critically than in more rural areas. And finally, the example of education and care: “Only 43 percent of respondents fully or somewhat agree that the quality of schools is good; only 39 percent fully or somewhat agree that the quality of childcare is good.”

Mood is worse than the situation – or vice versa

Habeck uses the example of childcare to get to the mood in the country. Again he holds up a diagram – the comparison between the actual range of daycare centers and crèches and the satisfaction with the range. This shows, among other things, that while childcare is actually top-notch in the eastern federal states, satisfaction is not quite as high in some regions. Conversely, the range of childcare in Bavaria is worse, but people are not less satisfied everywhere. “The situation is sometimes like this: we sometimes say that the mood is worse than the situation, and that is true for some. But sometimes the mood is also better than the situation.”

Economic development is currently stronger in the east than in the west, stresses the Minister of Economic Affairs. And yet the perceived reality is sometimes different. This is not easy to explain. “The report has no psychological part,” says the Minister. He refers to the historical experiences of structural change and job losses. His cabinet colleague, Interior Minister Nancy Faeser, puts it this way: “People are tired of crises.” This is not a completely new insight. The SPD politician states: “Good and equal living conditions throughout Germany are crucial for social cohesion.” For her, this is real “homeland policy.”

Criticism is guaranteed

The opposition is not prepared to let the government’s success stories stand just a few weeks before the important state elections in Thuringia, Saxony and Brandenburg. “Despite all the whitewashing by Minister Habeck and Minister Faeser: The federal government’s equality report is no reason for celebration, but should set off alarm bells,” commented Left Party politician Heidi Reichinnek. And party founder Sahra Wagenknecht even said: “The equality report is the next slap in the face for the traffic light coalition. Housing, schools, transport, health: living conditions in the Federal Republic have perhaps never been as unequal as they are now.”