Germany‘s Ruling Coalition reaches Agreement on Welfare Reform, 2027 Budget
BERLIN – germany’s governing coalition – comprised of the Christian Democrats (CDU), Christian Social Union (CSU), and Social Democrats (SPD) – announced a unified approach Wednesday to welfare reform and the challenging 2027 budget, following days of public disagreement.
Chancellor Friedrich Merz initiated the talks after proposing cuts to Germany’s welfare system, which he described as “unaffordable.” At a joint press conference, Merz and SPD ministers emphasized their shared commitment to maintaining the welfare state while acknowledging the need for adjustments.
“We don’t want to erase it, we don’t want to abolish it,” Merz stated. “But we want to preserve the moast important aspects of it, and that means we need to reform it.” He anticipates reaching a consensus on reform proposals “within the year.”
The shift in tone followed sharp criticism from SPD co-leader and Labor Minister Bärbel Bas, who earlier labeled suggestions that Germany coudl not afford its welfare system as “bullshit.” Bas affirmed Wednesday that she and Merz are now “on the same course,” characterizing the preceding debate as a necessary process “about finding a position and bringing some clarity.”
finance Minister Lars Klingbeil, also an SPD co-leader, expressed a desire to streamline the 2027 budget process. “I want to avoid the normal budgetary process for 2027 involving night-long coalition meetings and public disputes,should there be any at any point,” he said. The coalition aims for swift, collaborative decision-making.
The agreement signals a commitment to political leadership as the coalition prepares to tackle the complex 2027 budget.
