Germany's coalition government will maintain its commitment to its social agenda while balancing military aid to Ukraine in the upcoming budget discussions, Chancellor Olaf Scholz stated in a television interview on Sunday. Scholz emphasized that Germany will continue to protect and advance its welfare state, speaking to public broadcaster ARD.


As Europe's largest economy, Germany's three-party coalition—comprising the left-leaning Social Democrats (SPD), the pro-business Free Democrats (FDP), and the environmentalist Greens—is currently negotiating budget details. Scholz confirmed that these talks are expected to conclude by July 3, in preparation for a NATO summit on July 9.


"I am confident that we will be able to finalize the budget in July," Scholz said during ARD's summer interview series with political figures.


The coalition is grappling with issues such as funding for welfare benefits and new housing projects, while adhering to strict self-imposed borrowing limits. When asked if the financial support for Ukraine might be jeopardized due to the tight domestic budget, Scholz responded firmly: "There is no alternative, in my view, to change any of that."


He reiterated his long-standing advocacy for a cautious approach to making peace possible without forcing Ukraine to capitulate.


Scholz also indicated a shift towards a tougher stance on social benefit recipients who refuse employment and those who illegally work while receiving benefits. This issue has been a focal point of criticism from populists, who claim that the number of such individuals is increasing.


The European Parliament elections earlier this month saw the far-right Alternative for Germany (AfD) secure 16% of the vote, coming in second behind the opposition Christian Democrats. Meanwhile, support for Scholz's SPD fell to 13.9%, marking its worst performance in postwar Germany.


"We must ensure that everyone who can work does so," Scholz asserted, addressing the necessity of reducing reliance on social benefits.