(de-news.net) – Concerns regarding the sustainability of Germany’s welfare state have intensified in anticipation of the third coalition committee meeting between the CDU/CSU and SPD. Gitta Connemann, representing the CDU’s business faction, emphasized the imperative for comprehensive structural reforms across the social insurance systems. She argued that, in light of the disproportionate growth in social expenditures relative to economic output, rising labor costs and fiscal shortfalls would be unavoidable without prompt corrective action.
Kai Whittaker, the CDU’s labor market policy spokesperson, reinforced this position by warning that the simultaneous increase in contributions and decline in benefits risked alienating economically active citizens. He regarded the existing coalition agreement as a viable foundation but stressed the need for far-reaching reforms grounded in mutual compromise.
In contrast, SPD representatives firmly opposed austerity-driven approaches. Helge Lindh rejected assertions that Germany could no longer afford its welfare state, contending that reductions in expenditure alone would not enhance the effectiveness of social institutions. Markus Töns called upon coalition members to maintain realistic expectations and conduct negotiations with restraint, while Tanja Machalet cautioned against welfare cutbacks, particularly in view of the substantial increase in defense spending.
The CDU’s labor wing also advocated for moderation in the coalition’s internal discourse. Dennis Radtke, Chair of the Christian Democratic Workers’ Association, criticized the exchange of exaggerated rhetoric and implausible demands, urging both parties to prioritize constructive modernization over ideological confrontation. He encouraged SPD collaboration and expressed confidence in the coalition’s expert commissions to deliver actionable reform proposals, warning that categorical opposition to reform resembled obstructionist behavior.
Radtke further lamented the deterioration of communication within the coalition and advised against adopting the rhetorical posture of opposition parties. Meanwhile, Connemann intensified pressure on the SPD, asserting that unchecked social spending posed a threat to economic growth and employment, thereby undermining the welfare state itself. She advocated a reinstatement of the principle of mutual obligation and expressed concern over perceived inequities in the current citizen benefit system.
Mathias Middelberg, Deputy Chair of the CDU/CSU parliamentary group, issued a warning regarding significant financial risks and expanding budgetary imbalances projected through 2029. He noted that the finance ministry’s assumption of 1 percent annual economic growth from 2026 appeared overly optimistic given current stagnation. Consequently, he anticipated reduced tax revenues and highlighted the potential for increased interest burdens should public debt continue to rise.
Middelberg emphasized that fiscal deficits were likely to grow substantially and underscored the necessity of rigorous budgetary consolidation. He maintained that the urgency for reform was even greater than previously acknowledged. According to Finance Minister Lars Klingbeil’s projections, the federal budget faces an uncovered deficit approaching 170 billion euros by 2029.
