Germany: welfare vs. defense

[DrBob2]

Germany slashes welfare state to fund rearmament

Germany’s coalition government has agreed a sweeping package of welfare cuts worth €38.3 billion by 2030, stripping back the country’s health system and pension guarantees to free up funds for military spending…

The most contentious measure removes free health insurance coverage for non-contributing spouses. Under the new rules, spouses who do not pay into the statutory system will be required to contribute a minimum of 2.5% of their partner’s insured income…

Co-payments for medicines and hospital stays will also rise. Changes to the funding rules are expected to place additional strain on the statutory health funds, known as the Krankenkassen. In total, the austerity package is projected to save public health insurance funds €19.3 billion next year, rising to €38.3 billion by 2030, with reductions focused on spending at clinics, GP surgeries and on pharmaceutical costs.

The health cuts are not the only blow to German social security. Merz has stated that the state pension will be reformed into what he described as “basic cover” for old age and will no longer be sufficient to maintain living standards over time.

DB2

[captainccs]

Germany has found out that there is no such thing as a free lunch. Elsewhere I heard that part of the plan was to bail out the declining German auto industry faced with the EVs and China auto onslaughts. Tesla’s Berlin GigaFactory is hiring to expand production.

Google AI:

Tesla is significantly expanding its Berlin-Brandenburg Gigafactory, hiring 1,000 new employees to boost production by approximately 20% starting in Q3 2026.

As of April 23, 2026, the expansion plans include:

• 1,000 New Jobs: Recruiting for new roles begins in May 2026 to increase weekly Model Y production, driven by strong demand in the European market.
• Production Increase: The goal is a ~20% increase in weekly output, following a record-setting Q1 2026 where the factory produced over 61,000 vehicles.
• Permanent Roles: Around 500 existing temporary staff will be converted to permanent positions this year.
• Battery Expansion: A separate hiring search has started for hundreds of employees to support battery cell production scheduled to begin in the first half of 2027.

The plant currently employs around 11,500 people. This expansion follows high Model Y demand, with 33,723 European registrations in March 2026 alone.

The Captain

[tjscott0]

Germany’s demographics ain’t helping.

Germany is aging and shrinking much faster than expected

The Baltic states, Italy & Greece have worse demographic issues among others in Europe.
https://www.euronews.com/health/2026/04/20/eu-population-to-fall-by-12-by-2100-which-countries-will-decline-the-most
More specific info at the link.

[Tamhas]

@captainccs

a record-setting Q1 2026 where the factory produced over 61,000 vehicles.

@captainccs

high Model Y demand, with 33,723 European registrations in March 2026 alone.

So they sold over half in one month of the quarter?

[captainccs]

@Tamhas

So they sold over half in one month of the quarter?

Why not?

The Captain

[pauleckler]

Loss of low cost natural gas from Russia also must be impacting the Economy in Germany. And now high oil prices from the Iran war. No wonder EVs look attractive to buyers. Fossils fuels must still be part of the electricity source in spite of early adoption of renewables. Germany has much adapting to address to changes—including more spending for defense.

Interesting that French voters seem to be rejecting the need to adjust pension payments. But they at least have invested in nuclear power. Impact of cost of energy should be less severe.

[Goofyhoofy]

@Tamhas

So they sold over half in one month of the quarter?

Yeah. SpaceX bought 100,000 so employees can drive from one end of the assembly line to the other.

[Tamhas]

The numbers above are Model Y, not CyberTruck. CyberTruck sales in the EU must be tiny.

[Leap1]

@captainccs

Germany has found out that there is no such thing as a free lunch

There will be massive abundance for a few Germans.

This is about cutting taxes on the rich.

There will be massive deficit spending.

Supply side economics

Oh the kerfuffle between Trump and Merz, might as well have been staged as useful.

[Leap1]

@DrBob2

The most contentious measure removes free health insurance coverage for non-contributing spouses. Under the new rules, spouses who do not pay into the statutory system will be required to contribute a minimum of 2.5% of their partner’s insured income…

We had one partner working and healthcare. During the demand side econ. Oh yeah, taxes on the super wealthy were high, and real GDP growth was higher.

[Leap1]

@tjscott0

Germany’s demographics ain’t helping.

Non issue, just give the rich a tax cut.

[Leap1]

@pauleckler

Loss of low cost natural gas from Russia also must be impacting the Economy in Germany. And now high oil prices from the Iran

Keep buying the propaganda, and give the rich Germans a tax cut.

As of early 2026, Germany is not facing an acute, immediate natural gas shortage, but supplies are considered tight due to low storage levels following a cold winter, with levels dipping just above 20% in March. While the gas supply is considered stable and secure, Germany is navigating high prices and reliance on new liquefied natural gas (LNG) imports.

[image]Clean Energy Wire +4

Key details regarding the situation:

• Stable Supply: The Bundesnetzagentur (Federal Network Agency) considers the risk of a severe shortage low.
• Lower Reserves: Storage levels dipped from 75% in November 2025 to just over 20% by March 2026.
• Alternatives to Russia: Germany has replaced Russian pipeline gas with increased imports from Norway, as well as LNG from the US and other sources.
• New Infrastructure: Several new LNG terminals have been constructed, helping to shore up supply.
• Ongoing Concerns: Industry groups have called for a “strategic reserve” to manage potential disruptions in future winters.

[image]Clean Energy Wire +2

The overall energy situation remains sensitive to geopolitical issues, but the immediate crisis from 2022 has been managed through diversification and new infrastructure.

[image]Clean Energy Wire +3

Germany’s gas storage industry calls for strategic crisis reserve | Clean Energy Wire

Mar 6, 2026 — Germany’s gas storage levels are low and vulnerable to geopolitical situations. At the start of winter in November, storage levels were 75%. By the end of Janua…

[image]

Clean Energy Wire

Germany’s Oil and Gas Output Is Dwindling as Prices Rise - The New York Times

Mar 10, 2026 — Germany has also lost its main source of fuel after Russia invaded Ukraine in 2022. Berlin has scrambled to replace those flows with: * Natural gas piped in fro…

[image]

The New York Times

[image]

Current status of gas supply in Germany

The report also includes information on three levels of crisis: * Early warning level * Alert level * Emergency level The Bundesnetzagentur monitors the situati…

[image]

Bundesnetzagentur

[image]

Germany Joins France, Italy, Spain, the Netherlands, and Belgium are Grappling with Oil Crisis in 2026 for Travellers as Trouble Descends Explosion Situates in Solid Mayhem: New Update You Need to Know

Apr 24, 2026 — Germany has taken a robust stance in tackling the oil crisis. In a press conference held on April 17, 2026, the German government reiterated that there was no i…

Travel And Tour World

When missiles ignite global gas prices The Iran war and its consequences for Europe’s energy supply

Mar 19, 2026 — By comparison, during the same period of the previous year, storage facilities in Germany were still at around 56 percent. This low fill level is partly due to …

Xpert.Digital - Konrad Wolfenstein

German economic crisis (2022–present) - Wikipedia

Energy policy Germany’s dependency became a vulnerability following Russia’s invasion of Ukraine in 2022. The abrupt disruption of this energy relationship forc…

Wikipedia

Germany’s gas reserves drop amid freezing temperatures, opposition …

Feb 2, 2026 — Reiche highlighted Germany’s capacity to import liquefied natural gas, or LNG, from overseas, expressing confidence the country would get through winter without…

Anadolu Ajansı

[captainccs]

@Tamhas

The numbers above are Model Y, not CyberTruck. CyberTruck sales in the EU must be tiny.

Last I checked GigaBerlin does not make CyberTrucks. If I’m not mistaken my post was about GigaBerlin since this is a thread about Germany. That don’t deter detractors.

The Captain

[tjscott0]

@tjscott0

The Baltic states, Italy & Greece have worse demographic issues among others in Europe.
EU population to fall by 12% by 2100: Which countries will decline the most? | Euronews
More specific info at the link.

Visualizing Europe's Birth-Rate Collapse

Across the continent, fertility rates have fallen below the 2.1 births per woman needed to maintain stable population levels, with no country meeting that threshold as of 2024.

[pauleckler]

The LNG is much more costly than pipeline gas from Russia. That adds to inflation and makes plants uncompetitive in world markets. Plants are closing (or for sale if anyone wants them for a song). That and high oil prices mean major changes are required to adapt.

[Tamhas]

@captainccs

If I’m not mistaken my post was about GigaBerlin

Yes, which is why the remark about SpaceX and CyberTrucks is off the mark.

[jaagu]

@tjscott0

Across the continent, fertility rates have fallen below the 2.1 births per woman needed to maintain stable population levels, with no country meeting that threshold as of 2024.

Fertility Rate, Total for the Russian Federation

[Leap1]

True

Factory production remains 14% below its 2018 level.

[tjscott0]

Berlin faces missile gap after Trump’s troop cuts

Germany thought the United States would soon deploy long-range missiles on its soil that could strike deep into Russia and help deter an attack.

That plan is now effectively dead.

Without it, Berlin and its allies are left with a gap in their defenses — and no quick way to fill it.

Merz will have to crawl back yelling mea culpa.

[jaagu]

@tjscott0

Merz will have to crawl back yelling mea culpa.

I do not like your wording and your siding with Trump in this important area of defense of Germany and Europe.