Berlin – Friedrich Merz, leader of the Christian Democratic Union (CDU), has declared a reform of Germany’s “Bürgergeld” (citizen benefit) a top priority for his party, framing it as essential to incentivize work and address the country’s economic challenges. Speaking at an economic conference, Merz criticized the current system, which costs 50 billion euros annually, stating, “We strive to change this complex system…so that we can not only save money, but that we give workers in Germany the message: It is worth working.”
Merz acknowledged arduous negotiations with the Social Democratic Party (SPD) regarding the citizen benefit,specifically questioning the SPD’s initial concept. He also referenced the “trauma” surrounding the SPD’s previous Hartz 4 reforms and expressed regret that some continue to incorrectly attribute the 2010 Agenda to their current difficulties. A reform agreement between the CDU/CSU and SPD is already underway, with SPD Labor Minister Bärbel Bas signaling a stricter approach to those who refuse work while receiving benefits.
The CDU leader also raised alarm about the broader German economic situation, stating, “It’s not five to twelve, it is one minute after twelve,” and emphasizing the need for rapid improvements in competitiveness. He identified Germany’s high costs and slow pace as disadvantages compared to competitors in the USA and Asia. Merz called for tax relief, reduced energy prices, and less bureaucracy, while urging the coalition government to accelerate decision-making.
Markus Steilemann,President of the Association of Chemical Industry,echoed Merz’s concerns,describing disappointing figures and historically low capacity utilization in the chemical sector,warning the industry is on the “abyss.” He advocated for government relief for energy-intensive industries through a planned lower industrial electricity price.
