Merz wants to implement reform decisions as quickly as possible

Federal Government's Reform Agenda: What Happens After the Summer Recess?

Following the holiday period, Chancellor Merz and his ministers will convene next week for a cabinet retreat in Brandenburg. Merz intends to push forward the agreed reforms – despite the headwinds that arose during three weeks of recess.

The issues at stake are pensions, taxes, deregulation and digitalisation: Chancellor Friedrich Merz wants to use next week's cabinet retreat to commit his black-red cabinet to the swift implementation of the reform plans agreed before the summer recess.

Merz told Bild am Sonntag that he was confident the decisions could be implemented "as quickly as possible." "This is about rapid and comprehensive relief for the economy, particularly for skilled trades and small and medium-sized businesses," the CDU politician said. At the cabinet retreat, he would "commit his team to this task," Merz added.

Criticism from Business, Opposition and Within Own Ranks

The cabinet will convene on the coming Tuesday and Wednesday at Schloss Neuhardenberg in Brandenburg. Stimulating the economy and stronger protection against heat and other consequences of climate change are set to be key topics, as deputy government spokesman Sebastian Hille had already indicated.

With regard to the partly fierce criticism from business, the opposition and also from within his own ranks – such as from Saxony's Minister-President Michael Kretschmer (CDU) – Merz said: "The federal government will not be diverted from its course; we know what is right and good for the country. We will not be unsettled by this."

Kretschmer had announced that he would not approve the planned pension and care reforms in the Bundesrat.

Reform Package Agreed Before Summer Recess

Before the parliamentary summer recess, the black-red coalition had steered through the Bundestag and Bundesrat, among other things, the savings law for statutory health insurance funds and the Building Modernisation Act with new rules on heating. The coalition had also declared its intention to implement the recommendations of the pension commission in full.

At the coalition committee, the Union and SPD had also agreed on a reform package providing tax relief for low and middle incomes from 2027, as well as changes to labour law and further reductions in bureaucracy.

With information from Demian von Osten, ARD Capital Studio Berlin.