At the German government's 2026 "Digital Summit" in early November, Chancellor Friedrich Merz was asked by a journalist to square a difficult economic circle: If artificial intelligence could make hundreds of thousands of people redundant in the next few years, might it become necessary for the government to give people a basic income to ease the ensuing economic disaster?
Surprisingly, Merz didn't respond with a flat dismissal — as might be expected from a conservative politician known for his neoliberal, market-friendly views.
"I've always been a bit cautious about this issue in recent years," he said, as reported by the news outlet RND. "However, I'm also well aware that the issue of AI will change our working world so fundamentally that we'll have to give serious thought to many of these issues in the coming years — including the question: Is our productivity not good enough?"
What makes this ambiguity notable is that much of Merz's policies since becoming chancellor last year have involved making Germans work more: His government's planned pension reforms would see Germany's retirement age being raised. In July this year, he announced a crackdown on sick leave. And in spring last year, having barely taken office, he caused much consternation by criticizing the concept of a "work-life balance"

