The Christian Democratic Union’s (CDU) economic advisory council is advocating for a second wave of reforms targeting social welfare benefits, following the planned overhaul of the citizen’s allowance system. Wolfgang Steiger, the council’s Secretary General, told the “Rheinische Post” that further measures are necessary to address mounting concerns about the financial sustainability of the social safety net and incentivize workforce participation.
Steiger’s proposal centers on significantly tightening eligibility criteria and reducing benefit levels. He specifically suggested the possibility of compelling benefit recipients to engage in unpaid work, with complete suspension of allowances for those who refuse. Furthermore, he called for a rollback of the substantial increases to standard rates of benefits implemented under the current governing coalition, arguing that such reductions would generate substantial savings while simultaneously stimulating tax revenue and contributions through increased employment.
The urgency of a “Package Two” as Steiger termed it, stems from concerns surrounding the growing national debt. The CDU, while participating in the recent pension reform package, acknowledged that certain measures undertaken deviated from the coalition agreement and are projected to incur additional costs upwards of €120 billion by 2040. Steiger argued that these escalating liabilities place an undue burden on future generations and necessitate decisive action to restrain public debt.
His comments suggest a willingness to engage in negotiations with the Social Democratic Party (SPD), the junior partner in the governing coalition, to explore additional measures in basic income support. However, the tone indicates a desire for offsetting reductions, implying that any new policies restricting welfare benefits should be accompanied by similar-scale relief measures elsewhere in the fiscal landscape. This proposed approach reflects a broader CDU strategy of emphasizing fiscal responsibility while attempting to mitigate the political ramifications of restrictive social welfare policies. Critics may argue that the proposals further penalize vulnerable populations and risk exacerbating existing inequalities.