German Chancellor Friedrich Merz announces welfare‑abuse action plan

Chancellor Friedrich Merz told the CDU state party conference in Düsseldorf that the federal government will publish an action plan to combat misuse of social benefits in July. The plan will introduce stricter sanctions, additional controls and a new competence centre within the Federal Employment Agency to target fraud. It is part of a broader reform package that also includes implementing the pension commission’s 33‑point proposal, overhauling the health‑care system, adjusting income‑tax rates, tightening sick‑leave rules and cutting bureaucratic reporting requirements. The reforms will affect roughly 5.5 million recipients of the new basic security benefit that replaced Bürgergeld, imposing tighter co‑operation obligations. Merz said the health‑care reform will be debated in the Bundestag next week and reiterated the government’s aim for a stable, affordable social state and stronger economic growth.