The black-and-red coalition government is facing growing internal resistance from various factions due to its proposed austerity measures. Focus magazine reports that opposition is now mounting within the SPD (Social Democrats) regarding planned cuts to housing benefits (“Wohngeld”). Two SPD regional leaders, Steffen Krach of Berlin and Ulf Kämpfer of Schleswig-Holstein, submitted a strongly worded letter to the Federal Minister for Building, Verena Hubertz (SPD), demanding that the planned reductions be completely withdrawn.
Both politicians agreed that they are running their local SPD chapters as lead candidates in upcoming state elections-in Berlin on September 20th and in Schleswig-Holstein in April.
In their letter, they argued: “We cannot credibly campaign for affordable housing in the state elections while simultaneously explaining why people who can hardly afford their housing, even with a job or pension, will receive less support in the future.” For them, this situation constitutes a “political problem.”
The coalition intends to save €1.5 billion in housing benefits by 2027 and close to €2 billion by 2028. The plans involve suspending scheduled increases, halving the heating cost component, and modifying the calculation formula. Estimates suggest that one-third of recipient households may lose their eligibility, while others will have to cope with significantly lower payments.
The two officials noted that this economic policy bypasses the reality in major cities, where rent has “long been one of the largest financial burdens.” They reminded Party colleague Hubertz: “Your ministry specifically has the political responsibility to stand up for affordable housing.”
The letter, which concluded without any polite closing remarks, asserted that the planned cuts must be retracted. They concluded by stating, “We expect that you will amend the presented draft accordingly.”
