German Chancellor Friedrich Merz has acknowledged that the current welfare state in Germany is financially unsustainable given the country's economic output. Speaking at a state-level party conference of his Christian Democratic Union (CDU), Merz emphasized the need for reforms to social welfare spending without increasing taxes on medium-sized companies. He highlighted that Germany must adapt its welfare system as the economic growth and production are insufficient to support existing entitlement programs. Merz also pointed to the necessity of reforms to boost growth and employability, referencing unemployment figures as an indicator of this need. Additionally, he suggested that Germany should seek new trade partners if the United States no longer adheres to established trade rules. The CDU has reportedly targeted benefit recipients from Afghanistan and Syria as part of efforts to reduce what it describes as an "unsustainable" welfare budget. Recent data indicate that "Mohammed" is now the most common name among recipients of citizens' benefits, which are funded by German taxpayers. These developments come amid broader fiscal pressures, including stagnant growth and shrinking industrial output in Germany.