Political Uprising: Merz Faces Backlash Over Welfare Reductions Decision
In the heart of Europe, Germany's governing coalition is embroiled in a contentious debate over the country's worsening finances. The latest confrontation, centred around taxes and welfare spending, threatens to be even more explosive, raising doubts about the coalition's ability to hold together.
At the helm of the conservative Christian Democratic Union (CDU) is Chancellor Friedrich Merz. Merz, known for his promises and at times, his subsequent backtracking, has recently approved nearly a trillion euros for military spending. However, he insists there will be no new taxes, citing the coalition agreement signed earlier this year.
On the other side of the aisle, Markus Söder, the leader of the CDU's sister party, the Bavarian Christian Social Union (CSU), is calling for deep welfare cuts. Söder argues that "fewer benefits and more incentives to work" are required for Germany to remain competitive.
Labour minister Bärbel Bas, a member of the Social Democratic Party (SPD), has taken a different stance. She calls Merz's push to cut social spending "bullshit" during a party conference. Bas argues that the welfare state must be protected, not reduced.
The SPD's nomination of Frauke Brosius-Gersdorf as a constitutional judge caused deep tension between the coalition partners. Meanwhile, Finance minister Lars Klingbeil wants tax increases on the wealthy, a higher inheritance tax, and possibly a new wealth tax. Some CDU members, such as MP Andreas Mattfeldt, have suggested higher taxes on the wealthy in exchange for social reforms.
The public quarrel comes at a dangerous time for Merz, as important local elections take place on September 14 in his home state of North Rhine-Westphalia. The right-wing AfD is enjoying a surge in support in these elections. Merz's reputation for backtracking on his promises, including his initial promise of a tougher asylum policy, may not be helping his cause.
A plan to investigate state funding of NGOs, a promise made by Merz, has quietly disappeared. Sceptics question if Merz's no-tax pledge is another promise that will be broken. The budget gap to be closed is €172 billion over the next few years, a daunting task for the coalition.
As the elections approach, the future of Germany's governing coalition hangs in the balance. The country watches with bated breath, eager to see how the coalition will navigate these challenging times.
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