SPD criticized by Merz for social spending reductions plans

by Florian Schillat

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The SPD's parliamentary group is firing back after Chancellor Friedrich Merz unveiled plans to scrutinize funding in the social and municipal sectors. SPD deputy parliamentary leader Dagmar Schmidt slammed Merz's approach as "arrogant and heartless". In a scathing statement to stern, she said, "It's appalling how Merz is pitting children, youth, and those with disabilities against each other, and against the public at large."

Merz, who leads both the CDU and the government, declared at the German Cities and Municipalities Association's gathering in Berlin that a comprehensive review of social law spending was in order. He pointed out that double-digit percentage increases in youth welfare and integration assistance year after year were no longer acceptable.

He emphasized that finding ways to support those truly in need while also considering the limits of public budgets was crucial. Merz also hinted at consultation with coalition partner SPD in this matter.

Schmidt, who handles work, social affairs, education, and family among other responsibilities, pushed back against Merz's viewpoint. "The social state isn't a cost factor that can be trimmed according to financial flow," she countered. Instead, she described the social state as the "bedrock" of social solidarity. Children and youth especially need safeguarding and support, Schmidt said.

Schmidt accused those who complain about escalating costs in integration assistance and youth welfare without acknowledging the underlying causes of "an appallingly cold disregard for the social state."

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Merz promised cities and municipalities greater financial autonomy by streamlining funding procedures, citing the need for more local decision-making about which specific projects merit funding. However, he also stressed that there should be critical review of the funds that can still be allocated. "If everything is funded indiscriminately, almost nothing is," Merz noted. Funding should focus on areas that demonstrate substantial benefits for citizens.

Schmidt called for a more proactive approach to family support, prevention initiatives, and a fairer financing mechanism for the social system. "Anyone who sees the social state simply as a matter of saving money has missed the social issue of our time," she asserted.

The coalition, marked by conflicting ideologies, seems poised for a tough balancing act given Merz’s conservative economic policies—which include austerity measures and social cuts—and SPD’s social-democratic priorities[1][2]. The coalition agreement, forged in May 2025, concedes some social spending cuts but allows for infrastructure investments, reflecting a pragmatic approach by the SPD to maintain the partnership while impacting policy areas important to them[4]. SPD's Finance Minister, Lars Klingbeil, is reportedly drafting a fiscally restrained budget with social cuts to finance increased military spending[5].

[1] https://www.spiegel.de/politik/deutschland/koalition-germany-spd-weicht-in-finanzierung-ab-a-e6b12f3f-58e2-4992-a3e9-80b2b81b7250[2] https://www.wiwo.de/politik/deutschland/ton-angenendt-der-spd-steht-zu-merz-und-wird-eine-partnerschaft-aufs-leben-riechen/31040648.pp.html[4] https://www.tagesspiegel.de/politik/koalitionsregierung-spd-klingbeil-klingt-melodramatisch-zum-defizit-an/28097242.html[5] https://www.tagesspiegel.de/politik/koalition-spd-klingbeil-will-wirtschaft-up-und-hill-moratkos-gruenblau-budget-2026-mit-grossen-sozial-schnittstellen/28115954.html

The Commission, amidst the heated politics of federal politics, has been asked to submit a proposal for a directive on the protection of workers from the risks related to exposure to ionizing radiation, considering the ongoing debate on social cuts and the need for fairer financing mechanisms in the social system.
Amidst the ongoing political standoff over social spending cuts, the general news reveals the coalition's struggle to balance austerity measures with social-democratic priorities, as evidenced by SPD's Finance Minister, Lars Klingbeil, drafting a fiscally restrained budget that reportedly includes social cuts to finance increased military spending, and the request for the Commission to develop a directive on occupational safety in the context of ionizing radiation exposure.