Social associations and unions warn of cuts in the 2027 federal budget

Before budget discussions begin in the Bundestag, social associations and trade unions are warning of cuts that could be at the expense of social security. “Those who save on social security are weakening the backbone of our democracy,” says an appeal from an alliance that includes, among others, the Social Association of Germany, the German Federation of Trade Unions, the Paritätische Wohlfahrtsverband and the church social services Caritas and Diakonie.

Finance Minister Lars Klingbeil (SPD) will present the draft for the 2027 budget approved by the cabinet to parliament this Tuesday. Spending of 555.4 billion euros is planned. The social associations are calling for central social policy tasks to be adequately financed. The impression that there is not enough money available for necessary social services due to increasing defense spending must be avoided. German military spending is expected to increase from 82.7 billion euros this year to 183.7 billion euros in 2030. The budget for investments in infrastructure will also increase.

Associations warn against “fizzling out” relief measures

The associations express concern that planned cuts, for example in federal subsidies for pension and health insurance, in housing benefit and in parental allowance, will weaken the security systems in uncertain times when a strong welfare state is particularly needed.

They also call for an “overarching look” at parallel reforms in pensions, health or care. “Tax relief for private households is evaporating in view of the significant additional burdens resulting from lower social benefits and higher additional payments,” says the appeal, which is available to the German Press Agency.

Tax very high incomes more heavily

A well-developed welfare state is indispensable, says the associations' appeal, "and we can continue to afford it in the future." To achieve this, very high incomes, inheritances and assets would have to be taxed more heavily and fairly. Small and medium incomes should be relieved.

The appeal is also supported by, among others, the social association VdK, the Arbeiter-Samariter-Bund, Volkssolidarität, Arbeiterwohlfahrt and the trade unions Ver.di and IG Metall.