FRIEDRICH MERZ: "Das ist eine harte Entscheidung. Das wissen wir!" Kanzler stellt Reform-Hammer vor!

FRIEDRICH MERZ: "This is a tough decision. We know that!" Chancellor unveils sweeping reforms! The CDU/CSU-SPD coalition has approved a comprehensive reform package designed to boost the economy and provide relief for low-income earners. The "Program for Economic Recovery and Employment," presented by the government on Thursday, includes over 30 measures, ranging from moderate tax reform and labor law relaxations to deregulation and a ban on the nationalization of private rental housing at the state level. Chancellor Friedrich Merz (CDU), SPD leaders Bärbel Bas and Lars Klingbeil, and CSU leader Markus Söder emphasized at a joint press conference that the coalition was demonstrating its ability to act. "Germany is moving forward," said Merz. "This is a major step forward." The leaders of the CDU, CSU, and SPD had been in talks late into Wednesday evening. The reforms follow on from last week's decisions, when a comprehensive pension reform was presented and the Bundestag passed legislation such as the Infrastructure Future Act, designed to expedite the disbursement of investment funds. The coalition committee has now committed to implementing the individual pension laws by the end of the year. However, according to CSU leader Markus Söder, the agreed-upon higher taxation of mini-jobs means that the abolition of these jobs, proposed by the pension commission, is now off the table. Merz, however, emphasized that this remains an open question. He stated that the decision only concerned the tax treatment of mini-jobs, for which the tax allowance will increase from two to five percent. The party leaders stressed the need for compromises among the centrist parties to move forward. The tax reform, for example, turned out to be smaller than originally desired by the SPD and Finance Minister Klingbeil. It is now expected to provide tax relief totaling ten billion euros starting in 2028. In return, the wealth tax will be increased: It will then apply at 45 percent to incomes above €250,000 and at 47 percent above approximately €280,000. The top income tax rate and inheritance tax will remain unchanged. According to previous statements, Klingbeil entered the negotiations with proposals offering tax relief ranging from €17 to €28 billion. Sick leave by phone is abolished The CDU/CSU parliamentary group prevailed with several demands for changes to labor law. Sick leave by phone will be abolished; employees will need to provide proof of illness from the first day. However, companies can deviate from this requirement based on collective bargaining agreements or company agreements. "The number of sick days in Germany is too high," Merz explained. New regulations apply to housing construction. The coalition wants to build, not expropriate, said Vice Chancellor Klingbeil. Therefore, a state-owned housing company will be established. Furthermore, a federal law will prohibit the nationalization of private housing companies at the state level. Such expropriation is a recurring demand of the Left Party, which recently topped an Infratest dimap poll with 20 percent, particularly during the Berlin state elections. Both Merz and Klingbeil emphasized that the federal government will adopt a more decisive stance on trade policy. While the word "China" is not mentioned in the coalition agreement, both politicians stressed their intention to take a stronger stand against the unfair trade practices repeatedly attributed to the People's Republic. This, they said, is part of the government's preparations for a repositioning of the EU in the fall. According to Merz, electoral reform remains an open question. #merz #reform #germany #worldnewschannel Subscribe to the WELT YouTube Channel    / weltvideotv   WELT DOKU Channel    / weltdoku   WELT Podcast Channel    / weltpodcast   WELT Netzreporter Channel    / dienetzreporter   The WELT News Livestream http://bit.ly/2fwuMPg The top news stories on WELT.de http://bit.ly/2rQQD9Q The media library on WELT.de http://bit.ly/2Iydxv8 WELT News Channel on Instagram   / welt.nachrichtensender   WELT on Instagram   / welt   A note from us: Due to the high volume of inappropriate and offensive comments, we are currently unable to allow comments. Thank you for your understanding – the WELT Team Video created in 2026