German Chancellor Friedrich Merz has called for a fundamental rethink of the welfare system, saying the current model is no longer financially sustainable, according to The Telegraph.
“The welfare state as we know it today can no longer be financed from what we can afford economically,” Merz said on Saturday at a state party conference.
According to the publication, social security spending in Germany exceeded a record €47 billion in 2024 and continues to rise amid an aging population and rising unemployment. At the same time, Germany’s public debt stands at 62.5% of GDP, one of the lowest levels in the eurozone.
Merz acknowledged that he was dissatisfied with the government’s performance so far and called for joint action to take difficult decisions: “Let’s show together that change and reform are possible.”
“His position on limiting social spending is likely to meet resistance from coalition partners in the Social Democratic Party of Germany (SPD), who traditionally see themselves as defenders of the welfare state,” the report said.
Separately, Merz called on the SPD and the Christian Democratic Union to form a joint “anti-immigration and business-friendly” coalition policy. Both parties advocate tougher rules for the detention of migrants prior to deportation and an expansion of the list of safe countries for return.
