“Pressure Mounts on German Coalition as Conservatives Demand Fiscal Action”
Leading figures from the Christian Democratic Union (CDU) and Christian Social Union (CSU) are urging their coalition partner, the Social Democratic Party (SPD), to accelerate efforts toward fiscal consolidation and expenditure reductions, particularly within social welfare programs.
Jens Spahn, parliamentary group leader of the CDU, emphasized in an interview with “Der Spiegel” that Germany’s position as the “fiscal guardian” of the Eurozone necessitates a responsible approach to public finances. He argues that record levels of debt can only be justified if accompanied by economic growth and a commitment to expenditure control. “Every budget has so far left parliament in a different state than it arrived” he stated, underlining the need for change.
Spahn highlighted three key areas requiring immediate attention. Firstly, he pointed to the rising costs of the “Bürgergeld” (Citizen’s Allowance) scheme, exceeding 50 billion euros annually. Reform of this program, he asserts, is a priority. Secondly, he expressed concern that escalating social security contributions are hindering economic recovery, advocating for increased federal support for the care insurance system. Finally, he argued that a rising carbon dioxide price can only be sustainable if the resulting revenue is distributed equitably, suggesting a shift away from targeted subsidies toward reduced energy costs for all citizens.
Echoing these sentiments, Alexander Hoffmann, leader of the CSU’s state group in parliament, called for a focus on resolving domestic challenges following recent party conventions. He anticipates that the upcoming coalition committee meetings will prioritize fiscal consolidation. Hoffmann stated, “We need significant savings, for example through a fundamental reform of the ‘Bürgergeld’ toward a new basic security for job seekers, to enable us to implement other important projects from the coalition agreement.
Hoffmann welcomed the inclusion of Labor Minister Bärbel Bas (SPD) in the coalition committee, highlighting the need for a shared understanding on how to revitalize the German economy. He emphasized that substantial investment can only be justified by corresponding savings in other areas.
