Overview

• Chancellor Friedrich Merz explicitly excluded any form of tax increase, citing the coalition agreement in a ZDF interview and calling for deep social reforms.
• Labor Minister and SPD leader Bärbel Bas rejected claims the welfare state is unaffordable as “Bullshit” while saying changes are necessary.
• CSU chief Markus Söder pressed for “hard reforms,” including lower Bürgergeld outlays and stricter rules on housing costs and asset exemptions.
• Finance Minister Lars Klingbeil signaled SPD openness to tougher sanctions for “total refusers” and stronger action against undeclared work within the Bürgergeld system.
• A government commission began drafting proposals on Bürgergeld, Wohngeld and Kinderzuschlag due by year-end with implementation planned from early 2026, as the coalition prepares for a coordination meeting on Wednesday.