Merz: Germany’s Welfare State No Longer Financially Viable
25th August 2025
German Chancellor Friedrich Merz has warned that the welfare system in its current form “can no longer be financed with what we produce in the economy.”
Speaking at a conference of his centre-right CDU party in Osnabrück on Saturday, August 23rd, Merz demanded reforms to social spending while at the same time ruling out tax increases on Germany’s medium-sized companies.
He coupled his appeal with a grim assessment of the economy, declaring Germany to be in a “structural crisis” after three years of recession and slipping industrial competitiveness.
The problem with socialism is that eventually you run out of other people’s money.