Politically incendiary speech: Merz calls for economic growth and social security!

Politically incendiary speech: Merz calls for economic growth and social security!

On May 14, 2025, the left-wing parliamentary group leader Sören Pellmann sharply criticized the new federal government and criticized its silence on the social crisis in Germany. Pellmann is calling for the pension level to be increased to 53 percent and for a solidarity-based minimum pension of 1,400 euros. These key social concerns come in the context of rising living costs and intensifying economic pressures.

In a parallel discussion, Foreign Minister Johann Wadephul emphasized the importance of talks on the Ukraine war, which are to take place in Istanbul, and called for the participation of Russian President Putin. Wadephul highlights Germany's support for Ukraine and also addresses responsibility for European security. He also comments on Israel's security and the need for humanitarian aid for Gaza.

Political reactions and the German economy

Union faction leader Jens Spahn announced constructive cooperation between the governing parties, while Chancellor Friedrich Merz called for a joint effort to strengthen the economy and the Bundeswehr. Merz's government statement was received positively by business associations, which are calling for reductions in bureaucracy and investments. Employer President Rainer Dulger praises Merz's approaches to the new labor market policy; At the same time, SPD parliamentary group leader Matthias Miersch ensures constructive cooperation and calls for a minimum wage of 15 euros.

The AfD co-parliamentary group leader Alice Weidel, on the other hand, criticizes Merz and describes him as “Chancellor of the Left”. Merz himself emphasizes the need for affordable housing and announces measures to reduce bureaucracy. He also declares that Israel's security remains a reason of state and once again calls for humanitarian aid for Gaza. The reforms that the federal government is promising include abolishing the current citizen's benefit system and the promise of a pension level of 48 percent by 2031.

Social challenges in Ukraine

Meanwhile, Ukraine continues to struggle with the serious consequences of Russia's war of aggression, which began in February 2022. According to OCHA, 17.7 million people in Ukraine currently need external assistance for protection, shelter and food. The situation of single older Ukrainians is particularly worrying, around 80 percent of whom live below the official poverty line. In addition, 90 percent of retirees are unable to meet their basic medical needs.

Reforming the social system is being intensively discussed in order to counteract the social crisis. Currently, 73 percent of the population benefits from at least one social protection program. Nevertheless, social spending fell from 23 percent to 16 percent of the state budget compared to 2021. In 2022, 42 percent of the budget was spent on defense, which further limits the financial scope for social spending.

The challenges of the social system are compounded by a declining number of employees subject to social insurance contributions and a high budget deficit. In 2022, this amounted to 39 billion US dollars, which illustrates the dependence on international support - for example from the IMF, which has pledged 115 billion US dollars since the start of the invasion. The government's aim is to promote the alignment of social policy with EU directives, but the unpredictability of the war makes the implementation of such reforms extremely difficult.

These developments make it clear that both Germany and Ukraine face significant social and economic challenges. While the federal government in Berlin is trying to overcome this through political measures and reforms, the social crisis in Ukraine remains an urgent humanitarian and economic challenge.

For more information on current political developments in Germany, visit daily news and for the social challenges in Ukraine read the analysis bpb.