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Germany updates: Coalition backs welfare reform, budget plan

September 4, 2025
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Germany updates: Coalition backs welfare reform, budget plan
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Germany’s coalition leaders pledged unity on Wednesday after days of discord over welfare reforms and budget pressures.

Chancellor Friedrich Merz’s conservative and its Bavarian sister party, the , held talks with the center-left after openly clashing over the chancellor’s proposed cuts to what he called an “unaffordable” welfare system.

At a joint press conference, Merz and senior SPD ministers insisted they were united in their commitment to preserving , though they acknowledged reforms are necessary.

“We don’t want to erase it, we don’t want to abolish it,” Merz said. “But we want to preserve the most important aspects of it, and that means we need to reform it.”

The coalition would likely agree on the basis of reform proposals “within the year,” he added.

SPD co-leader and Labor Minister Bärbel Bas, who days earlier said it was “bullshit” to suggest Germany could not afford its welfare state, said she and Merz were “on the same course.”

“The debate, which was a matter of public record, was about finding a position and bringing some clarity,” she added.

The leaders said they wanted to demonstrate political leadership in drafting the difficult 2027 budget.

“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,” said Finance Minister Lars Klingbeil.

Klingbeil, who is also a co-leader of the SPD, said the coalition aims to make political decisions quickly and jointly.

The post Germany updates: Coalition backs welfare reform, budget plan appeared first on Deutsche Welle.

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