(de-news.net) – Federal Chancellor Friedrich Merz has reaffirmed his position that Germany’s social assistance systems require substantial reform, asserting that the current framework is no longer fiscally sustainable. Speaking at the CDU state party conference in Bonn, Merz emphasized the necessity of structural changes to ensure equitable opportunities for future generations. He acknowledged that such reforms would entail difficult decisions and reiterated his view that the nation has long operated beyond its financial means. Merz also offered a positive assessment of his administration’s performance and characterized internal disagreements with coalition partner SPD as intrinsic to democratic governance.
Merz’s recent critiques of the welfare state have elicited concern from the SPD, which regards his remarks as incongruent with the constructive tone of recent coalition negotiations in Würzburg. SPD parliamentary secretary Johannes Fechner underscored the importance of deliberate and cooperative reform efforts, cautioning against the pursuit of provocative public statements.
Economist Enzo Weber has called for a strategic shift in economic policy, identifying elevated unemployment levels as a principal driver of social welfare expenditures. He advocated for enhanced vocational training and individualized support for long-term unemployed individuals, noting that the coalition agreement provides a basis for pragmatic compromise. In contrast, Marcel Fratzscher, President of the German Institute for Economic Research, opposed reductions in refugee assistance and citizen benefits, warning against the marginalization of vulnerable populations.
Former Federal Finance Minister Peer Steinbrück (SPD) expressed support for comprehensive reforms to the welfare state, describing it as a vital cultural institution that must be rendered more efficient. He endorsed Merz’s initiative to restructure social policy, including the consolidation of administrative responsibilities and the advancement of digital infrastructure. Steinbrück also backed the SPD’s proposal to raise inheritance taxes, contingent upon the stipulation that additional revenues be exclusively allocated to educational investment.
