New network to promote dialogue between ministries of finance and social affairs.

At the meeting of Social Affairs Ministers of the Organisation for Economic Co-operation and Development (OECD) on 14 February in Paris (see News 02/2025), the Member States established a network of senior budget and social officials . Challenges such as demographic change, digitalisation and the consequences of climate change are placing new demands on social protection. This is accompanied by a new debate on the financing of this new social spending. Against this backdrop, the network is intended to serve as a platform for representatives of the two Ministries to engage in an open exchange on issues relating to funding and the adequacy of social protection.

Model joint network in the health and budget sector

It is modelled on the network of representatives from the Ministries of Health and Finance founded in 2011. This network meets annually and provides a platform for representatives from the OECD countries’ Ministries of Health and Finance to discuss the efficiency and effectiveness of policy measures, so as to ensure both the efficiency of healthcare systems and their fiscal sustainability. This network was a great success and is now being supplemented at regional level by networks for the Asia-Pacific region, Central, Eastern and South-Eastern Europe as well as Latin America and the Caribbean.

On the start of a joint meeting of both networks

The inaugural meeting of the network took place together with the representatives of the Health Ministries. The issues discussed ranged from the advantages and disadvantages of means testing and targeted social transfers to the financial requirements needed to meet health and social policy challenges as well as the best possible distribution of the tax burden required for financing.

Social investment

One topic that was of great interest to all participants was social investment. Prevention, occupational health and safety as well as return to work interventions (rehabilitation) measures are investments in people. They therefore make an important contribution to economic growth and the sustainability of our societies. However, social investments are often the first to fall victim to cutbacks in times of tight budgets.

One of the reasons for this is the non-recognition of the economic return on social investments. The results of any calculations available are often questioned due to a lack of standards. As a result, the Federal States are depriving themselves of part of their future development potential due to the absence of an adequate empirical basis for taking social investments into account in budget discussions.

Nevertheless, it was also clear from the discussion that not all social benefits can be viewed from the perspective of social investment. Benefits such as an adequate pension or high-quality care and health services have a social value of their own.