Citizens' money and savings: story of an error

Chancellor Friedrich Merz wanted to save tens of billions of euros with the citizens' benefit reform. The new basic security has been in effect since July. But the first numbers look significantly less spectacular than promised.

Things got emotional in the Bundestag at the beginning of the year during the discussions about the new basic security - because the Left and the Greens accused the federal government of making false promises: "We can save five billion, ten billion, 30 - who offers more from the Union?" said Heidi Reichinnek from the Left Party at the time. “Your new basic security is catastrophic for the people affected and doesn’t even save any money,” predicted Timon Dzienus from the Greens.

Both alluded to a statement by Friedrich Merz from December 2024. The Chancellor is likely to hear this more often these days: "We will turn this citizen's money system upside down. Double-digit billions will be saved," Merz had promised.

Apparently no savings so far

The Süddeutsche Zeitung has now evaluated the household data for July to September of this year - i.e. for the first three months in which the new basic security came into effect. Result: Expenses are roughly at the same level as the previous year.

From the outset, the Ministry of Labor was apparently less optimistic than Merz. Spokeswoman Simone Prühl emphasizes: "Right from the start, the BMAS has always advocated a realistic assessment of the savings volume."

There were already different numbers in the draft law: 86 million less spending for 2026, 69 less for 2027. That's a far cry from the double-digit billions. The CSU Bundestag member Hülya Düber counters: "The fact that we haven't seen any significant savings after just a few months doesn't surprise me personally at all."

CSU politician urges patience

Düber represents the Union in the labor and social affairs working group. She points out that the reform takes time - and that the second part is still to come: "It's about additional income regulations, it's also about flat rates for accommodation costs, rents and much more. And that's where we naturally see the greatest potential for savings in general, also for the federal budget."

The opposition doubts whether this second stage will really fill the coffers. The Green MP Armin Grau looks at what is happening on the labor market: "Cost reductions will only occur if the demand for workers increases or if placement in the labor market is improved. But the federal government is doing far too little."

Left-wing politician calls for a U-turn

Very fundamental criticism, however, comes from the left. For MP Cansın Köktürk, the entire austerity course is the wrong approach: "It is hard to beat the social coldness and inhumanity of wanting to make savings for the poorest of all people, while huge fortunes have been exempt from taxes for decades. Stepping down is not social policy."

The federal government is convinced that the reform will have a long-term effect: more people in work, less spending. It remains to be seen whether this calculation will work. After the first few months, the promised savings are not yet visible.