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4h ago

Merz Sets €5 Billion Bürgergeld Cut Target as Coalition Tensions Rise Before Talks

With a multiyear budget gap looming, the partners remain split over whether to rely on social spending cuts or tap top earners for more revenue.

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Merz bei der Ankunft am Rathaus von Münster
Bundesarbeitsministerin Bärbel Bas (SPD) und Bundeskanzler Friedrich Merz (CDU).
Rentendebatte: Fratzscher polarisiert – Leser warnen vor Spaltung.

Overview

  • In a Sat.1 interview on Tuesday, Chancellor Friedrich Merz said at least 10% should be saved in the Bürgergeld system, quantifying the goal at about five billion euros per year.
  • He also reproached Labour Minister Bärbel Bas for calling the affordability debate “Bullshit,” saying they had spoken and would not continue at that level of tone.
  • Bas rejects blanket benefit cuts and intends to present a Bürgergeld reform bill in September, as broader welfare changes move through a new Sozialstaatskommission.
  • Finance Minister Lars Klingbeil warns of a roughly 30‑billion‑euro shortfall by 2027, signals openness to some tightening in Bürgergeld, and urges considering higher taxes on top earners.
  • Coalition leaders meet this week in a Koalitionsausschuss while expert analyses caution that cutting Bürgergeld alone will not plug the fiscal gaps, pointing to pensions, health and care for deeper reforms.