Citizens ‘money: broad criticism of Merz’ Bürgergeld savings plan

In the case of citizenship, the coalition heads for its next possible great conflict. It is controversial whether it should be noticeably reduced directly for the beneficiaries for the recipients – for example in the case of housing costs. The SPD in the Bundestag rejected such savings proposals from Federal Chancellor Friedrich Merz (CDU) from the weekend as “little fed up”. CSU boss Markus Söder described the upcoming social reforms in Munich as a challenge for the Union and SPD.

In the ARD “Summer Interview”, Merz had said that a cap in the rental costs and a review of the granted apartment size were conceivable. “Flat rates are possible, lower sentences are possible.” This is on the test bench of the coalition. Wide criticism of Merz of unions and social associations followed.

The deputy chair of the SPD parliamentary group, Dagmar Schmidt, replied: “There will be no shortcuts with us.” The apartment sizes for people are already limited in the citizen benefit. “And apartments for normal earners are not cheaper by cutting up support.”

Rent more homeless for expensive ones?

The SPD social politician said: “Instead of solving the problem of expensive living space through more homelessness, it is important to limit excessive rents with the rental price brake and invest in affordable living space-as already decided by the coalition under pressure from the SPD.”

Specifically, Merz had announced that it would have to reduce tensions that would result from the fact that citizens’ money beneficiaries were paid more rent than “a normal family of workers” could afford. “In the big cities, they sometimes have up to 20 euros per square meter that they get from the social welfare office or from the Federal Agency for rent, and if they arise, that is already 2,000 euros a month for 100 square meters.”

Criticism of associations of Merz

DGB board member Anja Piel told the newspapers of the Funke media group: “Anyone who wants to cover or flat-rate rental costs must also say how they want to solve the problem of missing apartments.” Otherwise, homelessness and poverty threaten. The President of the German Tenants’ Association, Melanie Weber-Moritz, warned to shorten the funds that cannot be found on the rental housing market out of hand without state help, “is not a solution”.

The President of the VdK Social Association, Verena Bentele, criticized: “The announcement by Federal Chancellor Friedrich Merz to want to save vigorously in housing costs is without the basis.” The situation for many is catastrophic. Left boss Ines Schwerdtner warned that stricter rules for housing grants would only expand bureaucracy. The “companies, who then catch up with the money”, are responsible for high costs.

Basic differences in the Union and SPD

Schmidt basically criticized Merz: “Mr. Merz only asks fundamental questions about social security when it comes to privatizing life risks,” said the SPD MP. “Rather, one would have to ask yourself how you can basically all in solidarity in the financing and thus create relief for the middle.”

CSU boss Söder generally called for “more justice in the welfare state”. The citizens’ allowance must be changed from scratch – “not a little cosmetics, not a little.” Merz said: “In autumn we will have intensive discussions in which direction we go.” In the medium term, it should be saved more by a citizen allowance reform “than just one or two billion”.

In the budget draft of Labor Minister Bärbel BAS (SPD) for the current year, basic security for job seekers with the record amount of 51.96 billion euros is set. In 2024 it was 46.81 billion. With the civil allowance itself, i.e. the service, for example, according to the standard rate of 563 euros for single people, the costs increase by 3.1 to 29.6 billion euros. At 13 billion, the federal government participates in the costs of accommodation and heating.

Costs for Ukrainians are to be postponed

Bas had announced the reform in an interview for after the summer break. According to Bas, it is not about: “Where can we even save something from the poorest of the poor?” Increased costs would also have to do with the fact that almost two million Ukrainian refugees in Germany had become citizens’ fees.

The majority of the savings of 1.5 billion planned for 2026 are expected to come together according to the first plans, in which the Ukrainians will no longer receive civil allowance in the future. Instead, the asylum seekers’ benefits – no longer at the expense of the federal government, but the federal states and municipalities are to flow. Experts had warned that those affected in the system of asylum seekers would no longer get qualification for the quickest possible job recording.

Where Merz and Bas are united

Merz and BAS apparently agree that undeclared work and low employment should be pushed back with the citizens’ allowance. Merz emphasized that minor occupation with an up -to -be citizens’ benefit was “even properly organized”. In an interview, BAS had criticized “exploitative structures”, “luring people from other European countries to Germany and offering them mini work contracts”. The masterminds then took the requested citizen benefit.