The head of the German Trade Union Confederation (DGB), Yasmin Fahimi, maintains that the German social welfare system remains financially sustainable, differing from the assessment of CDU politician Friedrich Merz. In an interview published Thursday, Fahimi stated her belief that modernization of the system is necessary, but emphasized that benefit cuts are not an acceptable solution. She advocated for increased efficiency and greater fairness as key improvements.
Regarding the ongoing debate surrounding citizen’s income (Bürgergeld), Fahimi accused Merz and employer representatives of lacking seriousness in their arguments. She explained that comparing nominal values alone is a flawed approach, pointing out that such comparisons fail to account for broader economic context. Specifically, she asserted that citizen’s income has not increased in real terms and, when considered as a proportion of the overall budget or national economic output, has even slightly decreased.
However, Fahimi acknowledged areas that require attention within the citizen’s income system. She particularly highlighted the need to rigorously investigate and suppress criminal networks exploiting the system. She described a situation where individuals, primarily from Southeastern Europe, are enticed to Germany, housed in overcrowded and substandard properties and provided with falsified employment contracts solely to claim benefits. “We must put a stop to these criminal practices” she stated.
Furthermore, Fahimi identified a pressing issue regarding those supplementing their benefits with additional income. She characterized this practice as effectively a state-funded combination of social welfare and wages, which she believes is no longer acceptable and requires addressing.