In the past week, Friedrich Merz, the chairman of the Union’s parliamentary group, successfully pushed through a constitutional amendment and a multi-billion euro debt package, intended for military infrastructure and rearmament. The additional billion-euro fund – a “special asset” of 500 billion euros – cannot, however, be used to plug existing budget holes.
The future black-red government coalition will therefore need to balance the budget and make massive cuts, particularly in the social sector. In an interview with RTL, Merz stated:
“We now have overblown social expenditures, even at the local level and we must put everything on the scale now.”
Merz plans to abolish the “Bürgergeld” (formerly “Hartz IV”) introduced by the previous government in 2023 and instead introduce a “New Basic Security” system. The new system aims to prevent abuse and strengthen personal responsibility, as it is called. Social benefits will be strictly linked to the willingness of recipients to participate, with “total refusers” facing the threat of complete benefit cancellation.
Job centers will receive sharper sanctions, with a single missed appointment leading to benefit cuts. Multiple no-shows would result in the complete cancellation of benefits, according to the CDU’s plans. Additionally, the so-called “need-based communities” will be subject to stricter control: those living with other recipients of basic security will be more closely scrutinized to determine whether they have a claim to social benefits.
The article continues with quotes from Merz and other politicians, discussing the planned budget cuts, the potential abolition of the “Bürgergeld”, the introduction of the “New Basic Security” system and the planned changes to the child benefit, among other topics.