Germany is facing another period of political turbulence. This time, Friedrich Merz, leader of the conservative Christian Democrats (CDU) and a potential successor to Chancellor Olaf Scholz, is taking center stage, proposing overhauling the country’s budget and cutting social spending. Quite a bold move!
According to Bloomberg, Merz, the leading candidate for chancellor in Germany's upcoming snap elections, has proposed reducing €100 billion in spending earmarked for migration and social needs in an effort to address the country's difficult financial situation.
These measures starkly contrast with the current policies of Chancellor Scholz, who has managed to avoid cutting social benefits despite the significant cost to taxpayers.
In February 2025, Germany will hold snap elections for the chancellor’s position, prompted by an ongoing economic crisis, which is partly fueled by declining exports and rising energy prices.
Merz has previously criticized the government for its economic failures, accusing it of ignoring key issues such as growing capital outflows. In response, he plans to lower the corporate tax rate to 25%, although he warns that improvements will not come swiftly.
Regarding his initiative to cut migration-related expenses, Merz has called for the repatriation of unemployed Syrians residing in Germany.
Earlier, NATO Secretary General Mark Rutte proposed redirecting part of pensions and social benefits in Europe towards military production. He expressed the need to reevaluate current expenditures in order to meet the planned defense spending targets for NATO countries.
