Germany cuts social welfare as defense spending triples

Chancellor Friedrich Merz and the CDU-SPD government are launching a comprehensive attack on Germany’s social welfare system.

As a first step, they are demanding a 10% cut—about €5 billion—in spending on the so-called “citizens’ income” (Bürgergeld).

On Tuesday, Merz said this was only the “minimum amount.” He had earlier claimed that Germany could “no longer afford” its welfare system and declared, “The Bonn Republic has ended forever,” calling it a “break with the past.”

The “turning point” announced by Merz and his predecessor Olaf Scholz has already led to a dramatic increase in military spending, and now to cuts in social spending. The tripling of the defense budget is being financed at the expense of the poorest.

Germany’s 20th century comes to an end

Over the weekend, Chancellor Friedrich Merz launched a broad assault on the German social system under the slogan “Autumn of Reforms.”

In 2024, roughly €58.2 billion was spent on citizens’ income, which Merz has now singled out.

“Especially with the so-called citizens’ income, things cannot remain as they are, and they will not. This is not just a turning point, but a break with the past,” Merz said.

Referring to West Germany and the welfare state during the Cold War, he stated that “the Bonn Republic has ended forever.” He insisted that 10% of Bürgergeld could “definitely be saved,” rounding this to €5 billion, and stressed this was the “minimum.”

The statement came shortly after the Federal Employment Agency reported in August that unemployment had reached its highest level in 15 years, about 3.025 million people.

Merz admitted the situation “could get worse,” blaming US tariff policy, which he said would “significantly affect many German companies.”

No budget for welfare, but money for arms

German media appear to have joined the chorus. For example, n-tv warned that measures such as higher transport subsidies or tax breaks for agricultural diesel risked creating “extra holes in the budget that we really cannot afford.”

At the same time, no one mentions the “holes” caused by arms spending. Germany’s military budget, about €52 billion last year, will rise to €152.8 billion by 2029. Military infrastructure spending is expected to add about €70 billion by then.

Altogether, additional military and infrastructure spending amounts to an increase of €170 billion. Despite higher net borrowing (an increase of around €40 billion is planned), the federal government expects a financing gap of €74 billion in 2029.

Growing poverty in Germany

The unprecedented rise in military spending comes at a time when poverty is growing, the number of super-rich is increasing, and social divisions are deepening.

In April, a Deutsche Bundesbank study found that the richest 10% of German households now own 54% of the country’s total wealth, while the poorer half owns just 3%.

Meanwhile, the number of billionaires is rising rapidly. In 2023 alone, the number grew by 23, nearly 10%, bringing the total to 249.

According to the German Equality and Welfare Association (DPWV), 15.5% of the population will be affected by poverty in 2024, up 1.1 percentage points from the previous year.

About 5.2 million people suffer from such severe deprivation that they cannot heat their homes or buy new clothes. The average income of people affected by poverty was €921 per month, below the €981 recorded in 2020.

Protests against militarism met with state violence

Militarization, social cuts, and rising poverty are accompanied by growing repression against those opposing war and rearmament.

Last weekend in Cologne, police blocked a demonstration of about 3,000 people protesting the Federal Republic’s militarization. Police used violence, kettled over a thousand protesters until the early morning hours—sometimes without water—and detained them.

147 protesters required medical treatment due to injuries inflicted by police, and 18 were hospitalized.

One organizer said, “Police prevented people from receiving urgent medical aid.” Officers also “physically attacked the organizers’ lawyer and detained journalists present at the scene.”

Rheinmetall protests face crackdowns

The demonstration was part of the “Disarm Rheinmetall” alliance’s week of action against militarization and arms exports. Similar rallies had been held earlier in Cologne.

At a September 4 press conference, organizers and supporters said there had been massive interventions against freedom of assembly.

According to t-online, the march was repeatedly halted for trivial reasons (such as people covering their faces or the shape of banners) and was finally dispersed without proper consultation.

Speakers at the press conference reported that protesters were denied access to water and toilets, and medical aid was delayed. Those detained could only leave the blockade in the early morning.

Alliance members also reported humiliating searches and cases of sexual harassment.