In his government statement on Wednesday, 14 October, Merz said no euro flowing to Ukraine is missing from social or education spending, while AfD co-leader Chrupalla accused him of political failure.
The current financial plan puts federal interest payments at around 30.3 billion euros in 2026, rising to 66.5 billion euros in 2029.
Bärbel Bas resigned on Monday, 12 October, and Alexander Schweitzer (SPD) was sworn in as labour minister before the government statement.
EU leaders meet on Thursday and Friday, 15 and 16 October, on the EU budget, new protection instruments mainly with China in view, and enlargement.
On Wednesday, 14 October 2026, Chancellor Friedrich Merz gave a government statement in the Bundestag ahead of the EU summit in Brussels, to which he travelled that evening. Much of the speech dealt with disputes at home rather than the summit agenda. Merz said Germany is under pressure 'as perhaps never before since its founding' and argued that dissatisfaction feeds extremism. He called for a 'creative effort' to counter it and addressed the AfD directly, criticising what he called its delight in subversion and destruction.
“No euro that flows into Ukraine is missing from social spending or education spending in our country.”
The line was aimed at people who, in Merz's words, want to build a justice problem out of the issue. Readers commenting on Focus online were split: many said his arithmetic ignores extra loans, interest and future budget burdens, while others defended Ukraine aid as an investment in German and European security.
Merz's argument rests on the loosened debt brake for certain defence and security spending, which allows the federal government to take on extra loans without cutting schools, pensions or care directly. Those loans still carry interest that has to be paid from the budget. The current financial plan puts federal interest payments at around 30.3 billion euros in 2026, around 42 billion next year and 66.5 billion in 2029. The coalition has also created a special fund of 500 billion euros for infrastructure and climate neutrality, which widens present spending room while adding obligations for the future.
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Merz conceded that planned reforms to pensions, care and taxes would initially weigh on many people before paying off over time. He argued that the burden has been unevenly shared across the social insurance systems. Explaining the reforms has been a standing criticism of his government, and his speech returned to it at length.
“A justice gap between the generations has opened up in our country. And this gap will grow if we do not act.”
Merz presented the reforms as the answer to the frustration that he said extremists exploit. His opponents saw the same debate differently, and the AfD used it to argue that the government had delivered little.
AfD co-leader Tino Chrupalla accused the chancellor of political failure, saying nothing had changed on pensions, care or health and that the pension reform was still missing. He told Merz that the halfway point of the legislative term was near and called for an end to the 'endless financial and military support' for Ukraine, arguing that taxpayers can no longer afford it. Co-leader Alice Weidel told Merz that his time was up and repeated her call to buy oil and gas from Russia. The AfD gained strongly in the September state elections and may enter the government in Saxony-Anhalt. During the exchanges, Green MP Anton Hofreiter heckled loudly, and Bundestag vice president Bodo Ramelow said he was unsure whether the remark 'Russian agent resident in Switzerland' was parliamentary language and would examine whether to call him to order.
“It is over, Mr Merz.”
Bärbel Bas resigned as labour minister on Monday, 12 October, citing a private bereavement and also attacks on her from within the CDU. Alexander Schweitzer (SPD) was sworn in as her successor before Merz spoke. Merz said the two had not always agreed on substance but that he would not withhold recognition for her work. The EU leaders meet on Thursday and Friday, 15 and 16 October, to discuss the EU budget, new protection tools for the European economy with China in view, enlargement, Russia's war against Ukraine and the situation in the Middle East. Merz used the statement to call for cutting EU bureaucracy to spur investment.
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Merz told the Bundestag that no euro for Ukraine is missing from German social or education budgets, while AfD leaders accused him of failing on reforms.
AI text based on reports by Focus, Deutsche Welle, Bayerischer Rundfunk and other publishers. Published .