Government
Cabinet Takes Important Step Toward New Childcare Funding System
Minister Aartsen has submitted a bill to the Council of State to reform childcare financing, aiming for more affordable care for working parents. Starting in 2029, an income-independent subsidy will replace the current childcare allowance, paid directly to providers to eliminate complex reimbursement processes. The government plans to gradually increase subsidies through 2029, with annual costs reaching approximately €9 billion. This transition addresses personnel shortages by managing demand growth while reserving €240 million for municipal support between 2029 and 2038. The system classifies childcare as a service of general economic interest to comply with EU state aid rules, ensuring funds improve sector quality without imposing excessive administrative burdens on operators.
Ozetta summarises; the reporting is the newsroom's