In a powerful address to the Bundestag during a debate on the federal budget for 2026, German Chancellor Friedrich Merz of the CDU urged the nation to embrace the "unavoidability of changes" needed to steer the economy toward a stronger future. Amidst an economic slowdown and a backlog of essential reforms, Merz underscored the collective responsibility of the country to work together to ensure the economy can once again flourish. He stressed that a fundamental reform of the social welfare state is "indispensable" in order to preserve its core and maintain its sustainability for future generations.
The Chancellor dismissed accusations from critics who claim his administration is planning to cut social programs, framing his reforms not as an attack on the system, but as a necessary measure for its long-term preservation. He argued that those who resist these changes are, in fact, undermining the very foundations of Germany's social policies and welfare state.
Merz acknowledged the significant challenges facing the country, particularly on an international level, emphasizing that Germany is navigating one of the most demanding periods in its recent history. To overcome these hurdles, he stated, it is crucial to strengthen the nation through robust economic growth, as this is the only way to secure the funds necessary to finance infrastructure, demonstrate solidarity, and ensure social security on a lasting basis.
In a separate segment of his address, Merz advocated for an economic policy focused on "growth and competitiveness." He made it clear that the current approach is not about simply distributing existing wealth, but rather about generating a higher gross domestic product for the benefit of all citizens.
To achieve this, he announced that his cabinet would hold a two-day retreat in the coming week to focus exclusively on topics of competitiveness and state modernization, with concrete results to be presented to the Bundestag afterward. Merz reiterated his opposition to the notion that social programs would be excessively cut, calling such criticism a "distorted image." The true goal, he emphasized, is the preservation of the welfare state, not its abolition.
The Chancellor also took a firm stance in defense of his administration's climate policy, rejecting criticism by stating, "we want to achieve climate protection, but we are doing so without ideology." This was a clear message directed at the Green Party, a partner in the previous government. Merz argued that a climate policy that endangers or destroys the country's industrial base, or risks its prosperity, will not find public acceptance.
He suggested that recent election results demonstrate that this viewpoint is now the majority opinion among the population. He warned that any politician who fails to consider this reality will ultimately fail, not just on climate issues, but also in preserving the country's social cohesion. He asserted that the energy and climate policies of his administration will provide "more room to breathe for our economy" while simultaneously benefiting the climate.
He concluded that it is not about pitting industry against climate protection, but rather about enabling and safeguarding both for the future by using technology instead of implementing bans.
From breaking news to thought-provoking opinion pieces, our newsletter keeps you informed & engaged.
