One might expect that money would no longer be a problem in the coalition negotiations between the center-right and (CDU/CSU) and the center-left (SPD). After all, they have just pushed a through parliament.
But that money is earmarked only for defense, infrastructure, and climate protection.
It may only be spent as a supplement to the regular federal budget, in which there remains a gaping hole of at least €100 billion ($108 billion) for the duration of the new government’s projected four years in power.
The SPD caters to its working-class base and would like to increase taxes on high earners, but the CDU/CSU is opposed. At this stage, negotiations are being conducted by 19 senior politicians from all three parties, based on the who had reached some consensus but found many issues to remain divisive.
Sticking points remain in the areas of immigration, taxes, pensions, and energy policy.
What’s more, many promises were made during the election campaign, and the working groups suggested implementing everything from tax cuts and pension increases for mothers to free lunches in daycare centers and schools.
Nineteen leading politicians from the CDU/CSU and SPD are now meeting behind closed doors. And they are making no secret of the fact that finances are key.
CDU leader and chancellor-hopeful wants a “thorough review of our entire budget” putting everything to the test. Especially social spending, which accounted for around 45% of the budget in 2024, or a total of €476 billion.
Benefits and pensions
However, a large part of social spending cannot simply be cut for Germany’s aging society. In 2024, the state had to inject €116 billion into the strapped pension fund, which was around a quarter of the total budget.
The CDU wants to make cuts to “Bürgergeld,” benefits that go to the unemployed, and cut back spending on asylum and migration. They also want to prevent illegal immigration as much as possible.
To achieve this, the CDU and CSU want to turn back asylum seekers at Germany’s borders “in coordination” with its European neighbors. There has been much debate over what that actually means.
Cuts to development aid?
Cutting back support for asylum seekers and getting more of the unemployed back to work will not be enough to plug the gaps in the budget. In the search for additional ways to make savings, the focus has turned to development policy, among other things.
The CDU and CSU are proposing to reduce spending on development aid and to integrate the Federal Ministry for Economic Cooperation and Development (BMZ) into the Foreign Office. The aim would be to ensure the integration of foreign policy, security policy, and development policy, as well as the promotion of foreign trade.
During the election campaign, CDU leader Merz spoke of “restoring the ability to act in foreign policy.” For him, this means combining political and economic interests, especially in countries to which German money flows. Merz thinks it is counterproductive to separate foreign policy and development cooperation.
The SPD, on the other hand, wants to retain the development ministry and merge areas of development policy from other departments into it. When it comes to development spending, the SPD demands that the ODA quota be adhered to. This stipulates that 0.7 % of German economic output (GDP) must be spent on development aid.
A spokesperson for the BMZ told DW that countries such as the UK have shown “that the abolition of an independent ministry or a strong agency leads to a corresponding weakening in international relations and cooperation.”
Criticism from churches and NGOs
“Those who cut development spending not only weaken our international partnerships but also the values and interests that Germany stands for,” reads a statement by leading figures from the church and politics, signed by former Development Minister Heidemarie Wieczorek-Zeul (SPD) and her successor in office Gerd Müller (CSU), among others.
The President of the Council of the Protestant Church in Germany (EKD), Kirsten Fehrs, emphasized that development cooperation is “not a peripheral issue among many, but an investment in peace, justice, and a common future.” Emphasizing that an independent development aid ministry gives disadvantaged countries a voice in German politics and represents a foreign policy guided by values.
Catholic bishops from Africa and the Middle East, together with the Catholic aid organization Missio Aachen, also voiced their criticism. They appealed to the CDU/CSU and SPD to strengthen development cooperation.
This article was originally written in German.
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