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CDU pushes radical welfare reform to curb abuse and cut taxes

A bold CDU plan could reshape Germany's welfare—tightening work rules and slashing contributions. Will it spark a political showdown before March?

The image shows a poster with the text "Maganomics: An Economic Plan That Does Three Things Cuts...
The image shows a poster with the text "Maganomics: An Economic Plan That Does Three Things Cuts Taxes Even More for the Wealthy and Big Corporations" written in bold, black font against a white background. The poster is framed by a thin black border, giving it a modern and professional look. The text is centered in the middle of the poster, emphasizing its importance.

CDU pushes radical welfare reform to curb abuse and cut taxes

CDU General Secretary Carsten Linnemann has called for major changes to Germany’s welfare system. He argues that the planned replacement of Bürgergeld with a new basic welfare scheme in March is only the beginning. His proposals include stricter rules on earnings and a rejection of new taxes on rental and capital income. Linnemann wants to tighten the rules for supplementary earnings to stop potential abuse. At present, the first €100 of income is kept, and then 80% of further earnings are deducted from Bürgergeld payments. His suggestion is harsher: for those working just a few hours, their entire income should be fully deducted.

He also opposes the SPD’s push for new social security contributions on rental and capital income. Instead, he points out that two-thirds of people already pay solidarity surcharges and capital gains taxes for retirement planning. His alternative is a gradual reduction in overall social contributions, bringing them closer to 40% to stabilise the system. Linnemann’s plans focus on stricter welfare conditions and lower social contributions. The changes aim to reduce system abuse while avoiding new taxes on property and investments. The debate over welfare reform is set to continue as the new basic welfare system approaches in March.

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