Germany’s 2027 budget prompts warnings of social cuts

A coalition of German social organizations, charities and trade unions is warning lawmakers against cutting welfare spending during negotiations on the 2027 federal budget. In an appeal, the groups say social protections are “the backbone of our democracy.”

Finance Minister Lars Klingbeil is due to present the cabinet-approved draft budget to the Bundestag. The proposed spending totals 555.4 billion euros. The groups say the budget must adequately fund essential social responsibilities and avoid creating the impression that rising defense spending leaves too little money for social services.

Germany’s military spending is scheduled to rise from 82.7 billion euros this year to 183.7 billion euros in 2030. Infrastructure investment is also set to increase. Against that backdrop, the organizations are concerned about proposed cuts to federal contributions for pension and health insurance, housing benefits and parental allowances.

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Whoever saves on social spending weakens the backbone of our democracy.

They argue that weakening those systems would be particularly damaging in uncertain times, when a strong welfare state is most needed. The appeal also calls for a coordinated view of reforms involving pensions, health care and long-term care.

“Tax relief for households is evaporated by significant additional burdens resulting from lower social benefits and higher co-payments,” the groups say. They argue that a strong welfare state remains affordable, but that very high incomes, inheritances and wealth should face higher and fairer taxation, while small and middle incomes should receive relief.

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Tax relief for households is evaporated by significant additional burdens resulting from lower social benefits and higher co-payments.