(de-news.net) – In addition to outlining the coalition’s legislative agenda for the rest of 2026, Chancellor Friedrich Merz defended the coalition’s first six months in office, highlighted defense policy and structural economic reforms, acknowledged poor communication and poor polling, and reiterated important political and fiscal stances ahead of impending state elections.
At the Federal Government’s annual summer press conference in Berlin, Chancellor Friedrich Merz (CDU) presented the coalition’s agenda for the remainder of 2026 while portraying its first six months in office as a period of gradual progress in implementing structural reforms. Framing competitiveness as the central objective of the government’s domestic agenda, he argued that Germany’s economic challenges required long-term institutional changes rather than short-term interventions. Among the most significant developments to date, he highlighted reforms to the financing of the statutory health insurance system and said the coalition would next bring forward long-delayed legislation on long-term care and working hours after completing pension and broader health care reforms.
Reviewing the government’s domestic record, Merz identified statutory health insurance reform and the Investment Future Act as the coalition’s principal legislative achievements. The latter is intended to accelerate planning and approval procedures for infrastructure projects as part of a broader effort to strengthen Germany’s economic foundations. He nevertheless acknowledged that these measures, while important, would not by themselves restore the country’s competitiveness. Future pension legislation, he said, would draw on the recommendations of the Pension Commission and seek a more comprehensive restructuring of the retirement system, including the integration of a funded element into the statutory pension framework. Bureaucratic reform, meanwhile, would seek to reverse existing administrative practices by requiring government authorities to justify reporting and documentation obligations instead of obliging businesses to contest them.
Merz also sought to temper expectations regarding additional fiscal consolidation. Despite recurring calls to scale back government support programs, he argued that opportunities to reduce financial assistance and tax advantages had been largely exhausted, leaving only limited scope for generating further budgetary savings through subsidy cuts. He coupled that assessment with an acknowledgment that Germany’s economic recovery continued to be shaped by external developments beyond the government’s direct control, citing U.S. tariff policies, currency distortions including the weakening yuan, and the country’s exposure to global economic conditions. Even so, he argued that the coalition had begun to gain momentum and remained focused on preventing additional increases in social insurance contributions while expressing confidence that economic conditions would improve over the coming year. He added that planned decisions on long-term care financing and proposed reductions in maintenance advances for single parents would be designed to avoid harmful consequences for children.
Government strategy ahead of key state elections
In foreign and security policy, Merz placed renewed emphasis on rebuilding Germany’s defense capabilities, presenting the effort as a strategic necessity within a changing European security environment. He reaffirmed Germany’s ambition to assume a larger role within Europe and NATO, arguing that the alliance’s deterrence posture continued to function effectively. He pointed to joint submarine construction projects with Norway and Canada as examples of expanding defense cooperation. Merz also reiterated support for Ukraine’s eventual membership in the European Union, arguing that preserving a credible accession pathway remained important for sustaining the process’s political legitimacy. He further defended the planned deployment of U.S. intermediate-range missiles in Germany under national control, describing the arrangement as consistent with established alliance command structures.
Addressing the coalition’s domestic political position, Merz acknowledged weak public support and disappointing polling while conceding that the Federal Government had not communicated its program effectively. He described the forthcoming state elections as a significant political test but declined to speculate about any personal implications should his party secure a state premiership. Once again ruling out cooperation with the Alternative for Germany (AfD), he said the coalition would continue to oppose the party’s participation in government. He likewise avoided discussing possible coalition formations in Saxony-Anhalt after the election, maintaining his refusal to speculate on post-election scenarios.
Merz concluded by dismissing speculation over the future leadership of the European Central Bank (ECB) and defending the coalition committee’s composition, arguing that its membership reflected operational responsibilities rather than considerations of gender balance. He also indicated that another constitutional amendment to reform Germany’s debt brake was unlikely during the current parliamentary term because the coalition lacked the necessary constitutional majority. The roughly 90-minute press conference drew about 130 journalists, with questions accepted across a broad range of topics rather than organized by subject, reinforcing the event’s role as the government’s principal midyear review of its policy agenda.