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Söder Presses Deep Cuts as Germany Opens Social‑Welfare Reform Drive

A government commission has begun drafting proposals due by year-end, with coalition parties divided over the scale of Bürgergeld savings.

Overview

  • The reform commission starts work on proposals for Bürgergeld, Wohngeld and Kinderzuschlag by year-end, with implementation targeted from early 2026 and a coalition committee scheduled for Wednesday.
  • CSU leader Markus Söder demands lower benefits, stronger work incentives, tighter job-acceptance rules, stricter housing and asset limits, and tougher rules for recipients without German citizenship.
  • Chancellor Friedrich Merz argues painful decisions are unavoidable as reporting points to budget shortfalls exceeding €100 billion over the next three fiscal years.
  • SPD leaders reject claims the welfare state is unaffordable but support sharper sanctions for persistent refusers and action against undeclared work, and Tagesschau reports current plans include no Bürgergeld increase next year.
  • Official figures cited in the coverage put Bürgergeld at roughly €50–52 billion this year with about 5.3 million recipients, and around half of payments going to people without German citizenship.