Federal Chancellor: “This social state is no longer financially viable”

Friedrich Merz, Chancellor and Leader of the German Christian-Democratic Union (CDU), again shook the public debate in Germany.

His latest statements leave no illusions – according to him the German welfare state exceeded the limits of financial endurance.

"This social state in its current form is no longer financially viable."

– said Merz in an interview with the RND media group, stressing that Germany is facing a structural crisis that requires immediate response.

In his opinion, the social system, which for decades has been the pride and symbol of the German socio-economic model, begins to crumble under the weight of its own ambitions and increasing social expectations. Merz doesn't say that for the first time. However, now his words are in the context of the increasing budgetary tensions, the weakening of economical growth and the force on migration, which, in his view, only aggravates the problems that have been in place for years.

"We have 45 million people working and 82 million people surviving in this country. Something stopped agreeing.”

For Merz, this imbalance is not just math. This is simply a signal that a strategy based on the rule of solidarity, where an active part of society keeps the rest, begins to be disproportionately burdened. It warns that maintaining the position quo leads to erosion of motivation for work, while not ensuring sustainable social integration. In his opinion, the German strategy falls besides easy into the trap of "passion for transfers", and the effort and initiative are besides poorly rewarded.

Merz does not spare criticism about the current government of Chancellor Olaf Scholz. According to him, SPD, Greens and FDP policies are based on short-sighted distribution and attempted crisis management with public money alternatively of pursuing sustainable structural reforms.

"We can no longer sweep our problems under the carpet. What has been possible for years of prosperity is no longer working.”

It points out that for a long time Germany could afford an extended strategy of benefits thanks to a strong economy and favourable demographic conditions. However, these times – in his opinion – have passed. At the centre of his criticism is, among others, the Citizen's Allowance (Bürgergeld), which introduced by the current government replaced the erstwhile Hartz IV system. Merz believes that this step has weakened the force on the unemployed to take up work and created besides many "comfortable zones" that do not encourage activation.

"We must return to what constitutes a socially marketplace economy – individual work and incentives to work."

In his vision, the state should support those who truly cannot work but at the same time clearly communicate that work is simply a civic work alternatively than a luxury choice.

The CDU under its leadership besides wants to revise the rules on granting benefits to immigrants and asylum seekers. Merz argues that the system, which offers immediate access to benefits, creates a "social magnet" that attracts people not necessarily curious in integration or employment.

“If individual comes to Germany and receives benefits from the first day without having to show any activity, it is neither fair nor balanced.”

It proposes that financial support be closely linked to participation in language courses, vocational training and active occupation search.

At the same time, Merz does not present himself as an opponent of the welfare state as such. It is clear from his statements that he sees its value—but only erstwhile he functions as a transitional mechanics alternatively than a lifestyle.

"It is not about eliminating the social state, it is about fixing it before it collapses."

It warns against the phenomenon of the "brought border between aid and convenience" which, in its opinion, has long been the case in Germany. As a result, more and more people leave the labour market, and the number of those who live off benefits increases faster than the number of taxation payers.

His diagnosis is not limited to Germany. Merz suggests that many Western democracies are in a akin position – between the increasing social expectations and the shrinking financial capacity of the states. It is not only a substance of money, but besides of citizens' assurance in the institutions.

“If people see that their work is not rewarded and those who do nothing get more and more, they lose assurance in the system. And this is the most dangerous thing that can happen to democracy."

Merza's solutions won't all like it. His opponents accuse him of deficiency of empathy, besides technocratic approach, and attempts to blame structural problems on the poorest. However, 1 cannot neglect to announcement that his diagnosis finds a consequence among more and more Germans, tired of economical stagnation, bureaucracy of public life and expanding uncertainty about the future.

The CDU under his leadership will most likely effort to make improvement of the social state 1 of the main themes of the upcoming elections. Merz wants not only to gain power, but besides to impose a fresh political communicative in which responsibility, professional activity and fiscal rationality become overriding values. Are the Germans ready for specified a change? hard to say. However, it is certain that the debate on the future of the welfare state has already begun – and can no longer be avoided.

"A social state can only be if we have a strong economy and fair rules. It can't be that an active number finances a passive majority. It's just not gonna come off.”

It's a strong statement, but possibly that's the kind of honesty a German politician needs today. due to the fact that whether individual agrees with Merze or not, his words hit the heart of the problem, which is not only facing Germany, but the full Europe.