German Chancellor Friedrich Merz warned Germans that the German government can no longer afford to finance the existing universal welfare system.
According to him, spending on social programmes has ‘spiralled out of control’ and the German economy is in crisis.
According to The Telegraph, Merz called for a review of the benefits system, which cost a record €47 billion in 2024.
He also noted the government’s intention to continue its policy of restricting migration flows and creating favourable conditions for business.
Allianz CEO Oliver Bäte previously stated that Germany could return to its status as the ‘sick man of Europe’ due to the weakness of its social security system.
It was also reported that German businesses announced plans to cut 37,700 jobs in the first half of 2025.
