A political conflict has emerged within Germany’s governing coalition after Chancellor Friedrich Merz announced his plan to save €5 billion by cutting 10% from the “Bürgergeld” (Citizens’ Money) social aid program. This announcement has led to open disagreements with his coalition partner, the Social Democrats (SPD), who currently lead the Ministry of Social Affairs.
Merz’s Justification for the Cuts
In a television interview, Merz expressed his firm belief that a 10% saving is achievable from a system he feels is “heading in the wrong direction.” He said that if they fail to make such a cut, they will have failed in their duty. The “Bürgergeld” program currently costs €50 billion annually, making the proposed cut amount to €5 billion. Merz also criticized his Minister of Social Affairs, Bärbel Bas, for calling his previous statements on social spending “bullshit,” stating that they should not continue the public debate at such a level.
SPD Rejects Social Cuts
In response, Minister Bärbel Bas reiterated her opposition to any social spending cuts, arguing that Germany is a “rich country” and that it is “wrong” to say social security needs to be cut. She believes the proper path is to focus on increasing economic growth and getting people back to work. Similarly, Lars Klingbeil, the Finance Minister, has not ruled out raising taxes on high-income individuals and the wealthy as an alternative solution to address the federal budget deficit.
