Markus Söder, the leader of the CSU, has proposed making adjustments to the basic income benefit system (Bürgergeld) as a means of improving the strained federal budget. Speaking to “Welt am Sonntag”, he noted that the federal government possesses financial leeway, particularly concerning its social budget of around 200 billion euros and the Bürgergeld program. While acknowledging the state’s role in assisting those in need through the social safety net, Söder emphasized that incentives are also necessary to encourage people to return to work and become self-sufficient. According to the CSU leader, there remains “potential for adjustments” within both the Bürgergeld and the standard allowances of basic security.
On the topic of taxation, Söder largely opposes tax increases. He stated that the CSU maintains a clear policy: “no increases in the top tax rate, the inheritance tax, or the wealth tax”. Nevertheless, the party is open to fundamental reforms if those reforms are designed to relieve the pressure on the middle class, strengthen medium-sized businesses, and simplify the overall tax system. While Söder previously indicated openness to raising the “wealth tax” currently levied on income above 277,826 euros at a rate of 45 percent, he simultaneously called for the abolition of the Solidarity Surcharge, which is now only applicable to very high incomes.
Disagreements regarding the reform of the statutory health insurance (GKV) are becoming more pronounced within the Black-Red coalition and even within the broader CDU/CSU union. Söder highlighted several “open points” such as the financing of hospitals and the contribution-free co-insurance for families. Furthermore, he expressed concern over what he believes is an insufficient allocation of public funds for Bürgergeld recipients. He stated that the current provision creates an “imbalance” which needs proper consideration during subsequent parliamentary processes. Specifically, he argues that the funding for Bürgergeld recipients must increase significantly through tax revenues. He asserted that the proposed annual provision of 250 million euros, starting in 2027, is inadequate. “That is not enough as a relief for contributors. It must be much higher right from the start and grow stronger than currently planned”.