Leading figures from the Christian Democratic Union (CDU) and Christian Social Union (CSU) are urging their coalition partners, the Social Democratic Party (SPD), to accelerate efforts toward fiscal consolidation and review social benefit programs.
Jens Spahn, parliamentary group leader for the CDU, stated in an interview with “Der Spiegel” that the current trajectory of public finances necessitates action. He emphasized that record levels of national debt can only be justifiable if coupled with policies designed to stimulate economic growth and restrain spending. Spahn noted Germany’s role as a “fiscal cornerstone” of the Eurozone, highlighting a responsibility to maintain financial stability. He indicated that all government departments must contribute to achieving this goal.
Spahn identified three key areas for immediate review. Firstly, he cited the rapidly escalating costs associated with the “Bürgergeld” (Citizen’s Allowance) program, which currently exceeds 50 billion euros annually, stating it requires reform. Secondly, he expressed concern that rising social security contributions are hindering economic recovery, advocating for increased federal support for the care insurance system. Thirdly, Spahn argued that a continually increasing carbon price can only be sustainable if the resulting revenue is distributed equitably, proposing a shift away from targeted subsidies towards broader reductions in electricity costs.
Alexander Hoffmann, leader of the CSU’s state group, echoed these sentiments, emphasizing a need to move beyond party-focused discussions and address the country’s challenges collaboratively. He told “Der Spiegel” that fiscal consolidation will be a central topic in upcoming coalition committee meetings. “We need significant savings, for example, through a transition from “Bürgergeld” to a new basic security system for job seekers, in order to be able to implement other important projects from the coalition agreement” Hoffmann stated.
Hoffmann welcomed the inclusion of Labour Minister Bärbel Bas (SPD) in the coalition committee, underlining the importance of developing a shared understanding on how to propel Germany forward. He stressed that substantial investment is not viable without concurrent, effective savings in other areas of the budget.