German Chancellor Friedrich Merz has stated that the country’s welfare state can no longer be funded in its current form. His comments come as Germany’s economy has reportedly contracted for two consecutive years for the first time since the early 2000s. The chancellor pointed to declining industrial production and economic stagnation as key factors behind the financial strain.
To address the fiscal crisis, the government is considering major cuts to social benefits, a move that is expected to free up funds for other priorities, including military spending. The decision has sparked a public debate, with critics arguing that reducing social benefits would disproportionately harm vulnerable populations, such as pensioners and low-income families, while military expenditures continue to rise.
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Geopolitical Futures: Daily Memo: Germany’s Social Spending, Japan’s Drone Procurement
P4H Network: German Chancellor Merz announces massive cuts to social welfare benefits
