Berlin – September 09, 2026 -- A coalition of 14 German welfare, union and environmental organizations has issued a joint appeal to the Bundestag during its budget week, demanding sufficient funding for core social policy tasks in the 2027 federal budget.
Coalition flags cuts to pension and health insurance subsidies
The Sozialstaatsbündnis, which includes Sozialverband VdK Deutschland, DGB, ver.di, IG Metall, Caritas, AWO, Diakonie, Volkssolidarität, Deutscher Mieterbund, Der Paritätische, BUND, ZWST, ASB and SoVD, said planned reductions in federal subsidies to pension and health insurance systems risk weakening social security frameworks during a period of economic uncertainty.
Groups oppose staff reductions at Federal Employment Agency
The alliance also criticized proposed cuts to housing benefit (Wohngeld) and parental benefit (Elterngeld), and called planned personnel reductions at the Bundesagentur für Arbeit inappropriate given an economic downturn accompanied by rising unemployment figures. Potential cuts to climate protection funding were flagged as a separate concern, with the coalition arguing climate policy is a core function of a precautionary welfare state.
Alliance links rising defense spending to social funding pressure
The organizations argued that budget financing cannot be assessed in isolation from parallel reforms underway in pension, healthcare, long-term care, integration assistance and child and youth welfare systems, warning that tax relief for private households would be offset by higher social contributions and co-payments. They said rising defense expenditure must not create the impression that funds for social spending are unavailable, asserting that Germany, as one of the world's wealthiest nations, has sufficient resources that are currently misallocated.
Coalition calls for higher taxes on top incomes, inheritances and wealth
The alliance proposed shifting from expenditure policy driven by revenue targets toward a needs-based revenue policy, calling for stronger and fairer taxation of very high incomes, inheritances and wealth, alongside relief for small and medium incomes.