German Chancellor Friedrich Merz touts reform agenda and aims for over 1% growth

Chancellor Friedrich Merz told a CDU gathering in Düsseldorf that Germany’s “best years” lie ahead if the government’s reform programme is carried out. The coalition’s 34‑point package includes tax cuts for low and middle incomes, pension changes, reforms of the statutory health insurance system and a broad bureaucracy reduction. Merz said the plan demonstrates that the political centre can find solutions and that the public is ready to back the reforms.

Merz also warned that the economy must accelerate, expressing hope that growth in the next year will exceed one percent – a modest rise above the government’s own forecast of 0.5 % for this year and 0.9 % for 2027. He highlighted further measures such as cutting red tape and amending data‑protection law. Critics, including SPD leaders, have questioned elements such as stricter sick‑leave documentation, arguing it could raise infection risks and reduce productivity. A YouGov poll showed 59 % of respondents oppose the new sick‑leave rules.