Söder calls for radical reforms for a fair welfare state!

Söder calls for radical reforms for a fair welfare state!

A strong wind is blowing through Germany's social policy, and Cologne is also feeling it. CSU boss Markus Söder has taken a clear position and is calling for a comprehensive update of the welfare state. “The welfare state needs a fundamental update,” said Söder, who does not shy away from “tough reforms” in order to maintain performance and at the same time help people in need. Nordkurier reports on the plans of the black-red coalition, which wants to introduce several laws to reform the social systems next autumn.

The background for this reform line is the currently tense economic and financial situation in Germany. Söder sees the welfare state as outdated and unfair, especially since 50 billion euros are spent annually on citizens' money, half of which goes to people without German citizenship. Merz, the Union Chancellor, also warns that the existing system is no longer sustainable: “We have been living beyond our means for years.” According to Merz, the reforms should primarily serve to create incentives for people to return to work.

The autumn of reforms

In September 2025, the Bundestag is scheduled to begin deliberations on fundamental reforms in the areas of the welfare state, budget, health and digitalization. These projects are part of a so-called “autumn of reforms”. The coalition plans to modernize the welfare state with the aim of de-bureaucratizing administrative processes and achieving a better integration of citizen's benefit, housing benefit and child allowance. The health system is not ignored either: the introduction of a digital patient file is intended to reduce bureaucracy, while a new commission will take care of the sustainable financing of care. Bürger-Geld expects far-reaching changes.

A central theme of the reforms is citizens' money, which is intended to replace the previous Hartz IV. While the current system is intended to offer a greater focus on the qualification of the unemployed, the question of the financial viability and amount of social benefits remains in the room. Experts warn that despite the planned increases in standard requirements of an average of 12%, many people in the low-wage sector are dependent on social benefits. Boeckler points out that the discussion about the reforms also includes the idea of ​​tightening the sanctions for total objectors.

The way into the future

The reforms, which are to be implemented from the beginning of 2026, affect not only those receiving social benefits, but also employees and society as a whole. The government is planning to increase the minimum wage to at least 12.82 euros and make adjustments to social security contributions. Promoting training places and combating undeclared work are also high on the agenda. The federal government expects savings, but over 115 billion euros are to be invested in infrastructure, education and digitalization.

Opinions differ on the necessity of these reforms. While Söder and Merz are calling for clear savings and reforms, SPD leader Bärbel Bas describes the debate about the financing of the welfare state as “bullshit”, but also emphasizes the need for reform. Lars Klingbeil, also from the SPD, calls for measures against undeclared work in connection with citizens' money. It remains to be seen how the discussion will develop in the coming months and which measures will actually be implemented.