Bremen Mayor Bovenschulte issues a caution on indiscriminate budget reductions in the social services sector

In a series of recent developments, the German Social Association has expressed its concerns about the government's approach to social spending and the citizen's allowance.

The citizen's allowance, which makes up only four percent of social spending, has been a topic of debate. Given inflation, the zero increase in the citizen's allowance effectively amounts to a cut, a concern shared by the German Social Association.

Labor Minister Bárbara Bas had already announced another zero increase in the citizen's allowance in 2026, a decision that the Association has not indicated any support for.

The Association's CEO, Michaela Engelmeier, stated that questioning the minimum existence while large fortunes and high inheritances barely contribute to financing the commonwealth is irresponsible. She also criticised those who warn of exploding social spending and claim that Germany is living beyond its means while singling out citizen's allowance recipients as fueling an unsavory pseudo-debate.

The Association has not expressed any support for suggested sanctions on citizens receiving the citizen's allowance, nor for budget cuts in the social sector.

The meeting at the Chancellery, which focused on reforming social systems, consolidating the federal budget, and promoting the economy, has seen criticism from the Association. They believe that the government's approach to the citizen's allowance is a deception and a diversion, and that using populism to divide society is not a solution to budget issues.

Bremen's mayor, Andreas Bovenschulte, had warned against blanket cuts in the social sector before the meeting, criticising Chancellor Merz for suggesting potential savings from the citizen's allowance.

Social policy, alongside the economy, is one of the most sensitive topics for the ruling coalition in Berlin. The leaders of Union and SPD met in Berlin to discuss government projects for the coming months, but given their fundamentally different views, avoiding the contentious "traffic light" factor will continue to be challenging.

The Association has also expressed concern about the potential for further division within the ruling coalition, particularly in relation to social policy.

As of September 2025, there is no publicly available information on an ongoing discussion between the governing coalition Union and SPD regarding the origin of an additional 25 billion euros to close the alleged federal budget deficit. However, it is important to note that the 25 billion euro figure refers to a record municipal deficit reported by the Bertelsmann Foundation for cities, municipalities, and districts in 2024, not the federal budget.

Despite these challenges, the so-called basic needs for citizens receiving the allowance will remain at 563 euros per month for singles. The Association's stance remains clear: addressing budget issues should not come at the expense of the most vulnerable members of society.