Markus Söder, the leader of the CSU, proposed lowering the basic citizen’s allowance (Bürgergeld) as a measure to improve the strained budgetary situation. Speaking to the “Welt am Sonntag” the Bavarian Minister-President noted that while the federal government has considerable fiscal flexibility-specifically regarding the social budget of about 200 billion euros and the Bürgergeld-the social state must still provide support in times of need. However, he emphasized that incentives are also necessary for people to re-enter the workforce and become self-sufficient. Söder stated that there is “still potential” for adjustments concerning the Bürgergeld and standard basic security benefits.
On the topic of taxes, Söder largely rejected increases in specific areas, maintaining a clear stance: “We represent a clear line here: no increases on the top tax rate, inheritance tax, or wealth tax”. Nevertheless, the CSU remains open to fundamental reforms, provided they alleviate the burden on the middle class, strengthen small and medium-sized businesses (Mittelstand), and simplify the entire tax system. While Söder had recently expressed willingness to raise the so-called “rich tax” levied on income exceeding 277,826 euros at a current rate of 45 percent, he simultaneously demanded the abolition of the Solidarity Surcharge, which is currently only payable on very high incomes.
Regarding the reform of the statutory health insurance (GKV), differences within the black-red coalition and within the larger CDU/CSU bloc are becoming apparent. Söder highlighted “open issues” such as the financing of hospitals or contributions-free family coverage. Furthermore, he criticized what he perceives as insufficient funding for Bürgergeld recipients, arguing that “there is a certain imbalance”. According to him, the costs covered for Bürgergeld recipients through tax funds must increase. He stated that the current annual figure of 250 million euros (starting from 2027) is inadequate, arguing it is insufficient to relieve the burden on contributors and must increase sharply from the outset, stronger than currently planned.
