The head of the German Trade Union Confederation (DGB), Yasmin Fahimi, maintains the financial viability of Germany’s social welfare system, diverging from the perspective of conservative politician Friedrich Merz. In an interview, Fahimi acknowledged a need for modernization, but firmly stated that benefit cuts are not a viable solution. She emphasized the importance of increased efficiency and greater social justice within the existing framework.
Regarding the ongoing debate surrounding citizen’s allowance, Fahimi accused Merz and employer representatives of presenting a misleading picture. She criticized the practice of comparing nominal figures without considering broader economic context, arguing it’s inaccurate to focus solely on absolute numbers. Fahimi asserted that citizen’s allowance payments have not increased as a proportion of overall public expenditure or national economic output and have in fact slightly decreased when viewed comparatively.
Despite defending the system’s overall affordability, Fahimi identified areas requiring attention. She highlighted the urgent need to combat organized criminal activity exploiting the welfare system, specifically referencing instances of individuals from Southeastern Europe being lured to Germany, housed in overcrowded and substandard accommodation and provided with fraudulent employment contracts in order to claim benefits. “We must stop these criminal practices” she stated.
Fahimi also pinpointed a need for reform regarding individuals supplementing their benefits with additional income. She described the practice as effectively a publicly funded combination of welfare payments and wages and stated it is unsustainable in the long term.
