Growing Needs, Eroding Tax Bases

Dates and News
15.09.2026

ZEW Economist Holger Stichnoth Discusses the Future of Social Protection in Brussels

Image opens in enlarged view Prof. Dr Holger Stichnoth during his speech on the future of social security in Brussels
Prof. Dr Holger Stichnoth is delivering his speech on the future of social security in Brussels.

How can social protection systems be made fit for the future in the face of growing demands and increasing pressure on their financing base? This question was at the heart of a panel discussion attended by Professor Holger Stichnoth, head of ZEW’s “Inequality and Public Policy” Research Unit, at the Permanent Representation of Ireland to the European Union in Brussels on 9 September 2026. The event also included the presentation of a joint report by the European Union and the Organisation for Economic Co-operation and Development (OECD) on the financing of social protection systems. 

During the panel discussion, titled “Changing Needs, New Risks and Eroding Tax Bases: How to Square the Circle?”, Stichnoth addressed the challenges arising from a growing and changing need for social protection. Alongside the financial consequences of demographic change, the panel focused on emerging risks, including climate change and the potential impact of artificial intelligence on the labour market.  

“The burden of taxes and social contributions related to regular employment is particularly high in Germany. More determined efforts to combat undeclared work could help spread this burden across more shoulders. This is not only a question of financing, but also one of fairness,” Stichnoth emphasised.

To contacts
Unit & Topics
Inequality and Public Policy Press Relations and Editing
Tags
Social security Financing Climate Change Demographic change

Internationally renowned panel

Image opens in enlarged view Dr Holger Stichnoth, Pasi Moisio and Jekaterina Navickė during the panel discussion
Prof. Dr Holger Stichnoth, Pasi Moisio and Jekaterina Navickė discuss how to safeguard social investment despite financial pressures.

Further contributions came from Pasi Moisio, head of the Welfare State Research Unit at the Finnish Institute for Health and Welfare, and Jekaterina Navickė, adviser to Lithuania’s Minister of Social Security and Labour and associate professor at Vilnius University. The discussion was moderated by Benjamin Angel, Director at the European Commission’s Directorate-General for Taxation and Customs Union. 

The panellists discussed ways to mobilise additional sources of revenue, secure a broader funding base for social protection and to maintain essential social investment despite increasing fiscal pressure.