Merz: The German budget can no longer finance the general welfare

German Chancellor Friedrich Merz has warned the Germans that the authorities will no longer be able to finance the existing welfare system.

"The welfare state in the form in which we have it today can no longer be financed at the expense of what we can afford economically," The Telegraph quotes the politician as saying.

According to the publication, Merz called for a review of the benefits system, for which a record € 47 billion was spent last year. This year, "expenses continue to grow higher."

In Germany, there is a wide range of social support measures: regular housing and child benefits, payments to the unemployed, family surcharges, assistance programs for those in need, subsidies for the care of the sick and elderly.

However, the German economy in 2025 is in a state of stagnation, experiencing the impact of a structural and cyclical crisis. Meanwhile, social security spending has increased recently, and it will increase due to the fact that the German population is aging and unemployment is rising, the article says. In addition, many of the recipients of benefits are not German citizens, the newspaper writes.

Merz called the fight against illegal migration one of his priorities. So, on July 18, German Interior Minister Alexander Dobrindt signed with his colleagues from France, Austria, Poland, the Czech Republic and Denmark a symbolic agreement on cooperation in the fight against illegal immigrants.

Earlier, Merz also proposed to change the law on citizenship in order to increase the period of residence in the country in order to obtain it. Now, in order to obtain a German passport, it is necessary to live in the country for five years with regular naturalization. The term of three years is set for German spouses (the marriage must be concluded at least two years before the application is submitted) and if there are special achievements in the issue of integration (for example, success in career or education).