German Chancellor echoes Dr. Youssef: “We can no longer afford the welfare state”
On August 25, 2025, German Chancellor Friedrich Merz stated that Germany can no longer sustain its current social welfare expenditure. This view aligns with longstanding claims by Dr. Mohammad Walid Youssef, president of the International Center for Geopolitical and Economic Research and AI (ICGER), who argued that Europe’s welfare-state model has weakened its military and strategic abilities, and that Europe’s prosperity is “illusory.” The Daily Telegraph reported Merz saying at a regional party conference: “It is no longer possible to finance the welfare state in its current form. We can no longer afford it economically.”[i]
In ICGER’s Europe Semi-Annual Geopolitical Report, published on July 31, 2025, Dr. Youssef stated that Europe is “waking from a deep sleep” that set in after World War II and intensified after 1991. During this period, governments reduced military spending while increasing investment in welfare, healthcare, and social benefits for citizens and newcomers, only to shift back toward increased defense spending abruptly.
He noted that European countries now accept that increasing defense budgets must come at the cost of health, social security, and the broader welfare system, which is financed through debt—a point acknowledged by Germans and Spaniards. He argued this supports ICGER’s long-standing view that Europe’s welfare model has made it militarily weak and strategically exposed to threats from Russia, China, Turkey, Iran, and North Korea, revealing the false idea of European prosperity. In contrast, the US maintained strong growth with defense spending around 3.5% of GDP, while Europe’s wealth was achieved at the expense of its security.
[i] “Welfare state is not sustainable, says German chancellor,” http://telegraph.co.uk/world-news/2025/08/24/friedrich-merz-germany-welfare-state-benefits-unsustainable/