Unions announce resistance to social spending cuts

On Labour Day, German unions announced strong resistance to planned cuts in pensions, healthcare, and social benefits. DGB leader Yasmin Fahimi warned of societal conflicts. Over 366,000 people attended rallies.

In Nuremberg, DGB chair Yasmin Fahimi addressed the central May rally. "If they attack us, we will defend ourselves," she said. Unions called for demonstrations under the motto "Our jobs first, then your profits." According to the DGB, more than 366,000 people joined 413 events nationwide.

Fahimi targeted the black-red federal government, rejecting pension cuts: "Whoever attacks the pension security level provokes a major societal conflict." She criticized healthcare insurance savings as restrictions on care and demanded a wealth tax plus higher rates for the rich.

SPD leader Lars Klingbeil assured in Bergkamen that his party represents workers in the coalition. "We can be glad to have diligent workers in this country, and politics must not insult them from above," he said. Union and SPD plan pension and tax reforms.

Labour Minister Bärbel Bas stated in Duisburg: "The welfare state must not be shaved down." She rejected calls to abolish May 1 as a holiday and opposed attacks on labour movement achievements. During her speech, protesters with Palestine flags chanted slogans against her.

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Friedrich Merz urges SPD toward more reforms

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Chancellor Friedrich Merz has called on coalition partner SPD to lift blockades on reform projects. At an event of the German Banks Association in Berlin, he announced serious talks for the evening. Energy policy, pension reform, and statutory health insurance are in focus.

Top representatives of Germany's black-red coalition from CDU, CSU and SPD concluded their two-day talks on energy prices and social-tax reforms late Sunday night at Villa Borsig near Berlin. No results were disclosed immediately. It remains unclear if announcements will follow on Monday.

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Following backlash to his recent comments, Chancellor Friedrich Merz (CDU) assured no cuts to statutory pensions at a CDU event. Saxony-Anhalt Premier Sven Schulze (CDU) reiterated demands for pension reform to address East Germany's unique reliance on state pensions.

Vice-Chancellor Lars Klingbeil outlined a reform agenda for the coalition at the Bertelsmann Foundation. He demanded courage from his SPD, as 2026 would require boldness. This comes ahead of negotiations on a major package of measures.

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Days before the planned cabinet decision, the SPD warns against overburdening insured individuals with Health Minister Nina Warken's savings package. The SPD demands more cuts from pharmaceutical companies and efficiency measures. The Greens have presented their own counter-concept.

Social partners met on Thursday, February 19, at Unédic headquarters to discuss amicable separations, but differences remain. The government requires at least 400 million euros in savings, while employers target one billion per year. The path to an agreement on February 25 appears narrow.

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