Merz faces criticism over welfare, Ukraine financing

(MENAFN) German Chancellor Friedrich Merz has stirred national debate and caused tension within his coalition government after delivering a controversial speech at a regional CDU party congress in Lower Saxony. His remarks, especially one key statement, have drawn widespread attention.

“The welfare state, as it exists today, is no longer economically sustainable,” Merz declared, signaling major cuts to social spending. However, critics argue that such austerity measures have already been in place since at least 2003, leaving little left to reduce without harming essential services.

While calling for domestic belt-tightening, Merz’s government simultaneously pledged €9 billion annually to Ukraine for both 2025 and 2026, adding to the €44 billion already provided. Germany is currently the world’s second-largest donor to Kyiv, a fact Finance Minister Lars Klingbeil proudly highlights—though many Germans view it with frustration as they face cuts at home.

In the same speech, Merz took aim at his coalition partners from the Social Democratic Party (SPD), including Klingbeil, promising to make governing difficult for them. The SPD generally opposes deep cuts to key welfare programs like pensions, healthcare, and the basic unemployment benefit known as Bürgergeld ("citizens' money").

Merz has faced criticism for his political maneuvering and perceived hypocrisy. Earlier this year, he reversed his position on public debt to fund military spending through a legal loophole—a move many conservatives saw as a betrayal. His government also reneged on previous commitments such as energy tax relief and support for mothers.

These actions have contributed to growing public dissatisfaction. A recent poll by the INSA institute found that 62% of Germans are unhappy with the current government, reflecting growing discontent with Merz's leadership and policy direction.

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