Saving a substantial sum of five billion from taxpayer funds, as proposed by Merz.
In a retreat held in the picturesque town of Würzburg, parliamentary groups from the Union and SPD have reached a consensus on a common course and timetable for legislative plans for the autumn season.
At the forefront of these plans is the reform of the citizen's allowance system. Federal Minister for Social Affairs, Health, and General Welfare, Barbara Bas, is working diligently on a reform draft, aiming to improve support efficiency and reduce bureaucratic hurdles. The current system, which costs around 50 billion euros per year, may see tightened participation obligations, according to Bas.
German Chancellor Friedrich Merz (CDU) has set a billion-euro savings target for the citizen's allowance, with his savings goal estimated at around five billion euros. Merz is also pushing for speed in the active pension, proposing tax-free additional earning opportunities of up to 2,000 euros.
The reforms proposed by Bas and Merz are not without controversy. Bas has criticized the tone that the economy is not running because the social systems are too expensive, a sentiment she reiterated in a magazine interview. In response, Bas described such debates as "bullshit" in front of party members.
Meanwhile, CDU representative Dennis Radtke has voiced support for certain increases in inheritance tax for reasons of justice. This proposal, however, may face opposition from other coalition members.
The coalition's progress following the debacle surrounding the reappointment at the Federal Constitutional Court remains uncertain, as the SPD has yet to announce a new candidate. Despite the deep divisions that have arisen, Bas thinks there is a great opportunity to make the systems future-proof for the next generations.
The promises for the autumn plans range from more favorable energy prices to bureaucratic simplification to planning acceleration. Merz and Bas are scheduled to have an evening meeting to discuss these plans further. The Union and SPD aim to gain momentum for their next projects during their first meeting in the coalition committee after the summer break.
As the autumn legislative plans unfold, it remains to be seen how the coalition will navigate these complex issues and work towards a common goal.
