As AI reshapes work, could universal basic income be part of Germany’s solution to the changing economy?

Merz signals openness to debate

At Germany’s Digital Summit in early November, a journalist asked Chancellor Friedrich Merz whether AI-related redundancies could make a government-provided basic income necessary. Merz did not reject the proposal outright, saying the technology could transform working life and that such questions would need serious consideration.

The response stands in contrast with policies and remarks associated with Merz’s government, including planned pension changes that would raise the retirement age and a crackdown on sick leave. Last spring, he also criticized the idea of work-life balance and said Germany needed to work more efficiently.

Warnings over jobs and disruption

Andrea Nahles, head of Germany’s Federal Employment Agency, warned this week that AI could eliminate as many as 800,000 jobs in Germany over the next 15 years. She also said the technology might eventually create a similar number of jobs, though the transition could still bring substantial social and economic change.

Digital transformation and government modernization minister Karsten Wildberger has repeatedly urged Germany to prepare for AI’s economic effects. In March, he told the Neue Osnabrücker Zeitung that an unconditional basic income could help cushion labor-market upheaval.

Campaigners call for deeper discussion

Kirsten Herrmann, a board member of Mein Grundeinkommen, welcomed the growing willingness among politicians to discuss how people’s economic security might be protected during technological change. She cautioned, however, that individual comments do not amount to a change in government policy.

Herrmann said the country needs a serious, constructive debate about the role basic income could play. The idea has a long history, appearing in Thomas More’s 1516 book Utopia, and has drawn support from prominent technology figures, including Elon Musk, Anthropic CEO Dario Amodei and OpenAI co-founder Sam Altman.

Herrmann described technology leaders’ support as a double-edged sword, saying it is useful when prominent people draw attention to basic income but expressing doubt that they and campaign groups share the same aims. The article ends before completing her explanation of that difference.