Merz’s reform appeal

Chancellor Friedrich Merz (CDU) used his government declaration in the Bundestag on Thursday to rally the country behind a sweeping reform agenda. Though the speech was officially dedicated to next week’s EU summit, Merz spent most of his time on domestic challenges. He framed the choice as binary:

“Either we shy away from changes, changes that initially also mean restrictions,”

or 

“we use the strengths and potentials we have to turn the tide for everyone and get back into a better position on all fields where necessary.”

Merz said his government had chosen the latter path and was

“firmly resolved”

to pursue it, asking every citizen to examine

“what he can contribute to the success of the whole,”

even if it is simply the readiness to discuss with goodwill rather than dismiss with contempt.

Talks with social partners

The speech came hours after the coalition leadership met with trade union and employer representatives in the Chancellery. The gathering, meant to launch a reform process covering the labour market, social insurance, income tax and bureaucracy, produced no concrete results. Merz nonetheless praised the

“extremely good, very constructive atmosphere”

and said talks would continue. The coalition aims to pass a reform package before the parliamentary summer recess in mid‑July. SPD parliamentary group leader Matthias Miersch endorsed the process but stressed the outcome must be 

“something of which everyone says that is fair.”

Opposition attacks

Green group leader Britta Haßelmann ridiculed the timing of the social‑partner meeting, calling it 

“sad that after a year you get the idea that it could take place.”

She accused the government of turning the word

“reforms”

into

“a synonym for cuts,”

adding that

“people feel ripped off,”

as the planned reductions would always hit the same groups. Left‑party co‑leader Heidi Reichinnek dismissed the Chancellery round as a 

“show event”

aimed at simulating participation, while her colleague Sören Pellmann denounced a policy of 

“social clear‑cutting.”

Business pressures

Industry associations welcomed the dialogue but urged swift decisions. BDI President Peter Leibinger said

“reforms must contribute to the competitiveness of Germany as a business location”

and that

“the coalition partners can and should now build on the talks.”

ZDH President Jörg Dittrich highlighted the shared awareness of the need for deep reforms, while demanding

“a noticeable reduction in non‑wage labour costs.”

VDMA chief executive Thilo Brodtmann was more sceptical, warning that

“the government cannot and must not delegate responsibility for necessary reforms to third parties”

and urging

“political action instead of further delays.”

AfD broadside

AfD leader Alice Weidel labelled Merz’s speech the

“swan song of a failure”

and painted a picture of a country in decline. She also attacked SPD co‑chair and Social Minister Bärbel Bas over a past remark and suggested that if the CDU/CSU does not change course,

“people will force early elections”

to bring the AfD to power.