The German federal cabinet has unveiled a wide-ranging reform and policy package aimed at strengthening national competitiveness, modernizing state administration, and addressing pressing social and security challenges. Approved on Wednesday following a two-day cabinet retreat in Berlin, the initiatives span numerous measures, covering administrative reform, digitalization, energy and infrastructure development, foreign professional recognition, and enhanced national security and counterterrorism legislation.
“We have the ambition to return to the top,” stated Chancellor Friedrich Merz (CDU) after the cabinet’s deliberations. The initiative reflects a coordinated effort to streamline government processes, reduce bureaucracy, and accelerate digital transformation in public administration.
Chancellor Merz, Vice Chancellor Lars Klingbeil (SPD), and Interior Minister Alexander Dobrindt (CSU) emphasized the cooperative spirit within the coalition. Merz noted, “We have managed in recent months to create a very good, collegial, and open working atmosphere in this coalition.” Klingbeil added that the retreat was both “enjoyable and highly effective,” underscoring the government’s readiness to drive meaningful change.
Interior Minister Dobrindt highlighted the importance of the Villa Borsig retreat, praising the cabinet’s approval of state modernization plans. “We want, we can, and we will advance Germany. The agenda ensures that unfinished business from the past is addressed while new initiatives are launched,” Dobrindt explained.
The Modernization Agenda is a binding, cross-departmental roadmap with clear implementation deadlines. According to the government, its primary objectives include simplifying administrative procedures, reducing bureaucracy, and introducing advanced digital solutions, including artificial intelligence, in public services.
The government reaffirmed its coalition agreement target of reducing bureaucracy costs by 25 percent, equivalent to €16 billion, by the end of the current legislative period in 2029. In addition, the plan reiterates commitments to staff reductions within ministerial and Bundestag administrations as part of broader efficiency goals.
Digitalization Minister Karsten Wildberger (CDU) described the program as “a significant step to relieve citizens and businesses.” Among the 23 central projects outlined in the agenda are initiatives to allow companies to be established online within 24 hours and a centralized portal at the Federal Motor Transport Authority for swift vehicle registration.
The agenda also extends the direct payment mechanism for public funds, enabling the federal government to transfer money directly to citizens, bypassing intermediaries, a system previously unavailable during emergencies such as the COVID-19 pandemic, and had to be done through employers, for example.
To support the recruitment of international specialists, the government will establish a digital “Work-and-Stay Agency,” which will streamline visa applications and the recognition of professional qualifications. For export-oriented companies, a new AI-driven platform will consolidate information on foreign trade promotion and development cooperation.
In a related move, the cabinet approved a bill to accelerate the recognition of foreign professional qualifications in healthcare. Doctors, dentists, pharmacists, and midwives with international degrees will now have a simplified and digitized approval process.
Chancellor Merz emphasized that the reform would ensure the rapid integration of essential healthcare professionals: “The recognition procedures will be simplified so that we can quickly secure the necessary expertise.” Health Minister Nina Warken (CDU) described the step as vital to addressing the growing shortage of skilled workers while maintaining high standards for patient safety and care quality.
The cabinet also approved action plans for the development of a nuclear fusion power plant and for accelerating the availability of hydrogen energy. Additionally, the so-called “Construction Turbo” initiative aims to make building projects faster and more affordable. Klingbeil highlighted that while the government has achieved progress, “there is still much to do,” indicating that the Modernization Agenda will be supplemented with additional measures in the future.
The German government is also taking steps to reinforce national security. A new criminal law draft passed by the cabinet allows the prosecution of preparations for terrorist attacks using dangerous tools, such as vehicles or knives. The legislation also criminalizes re-entry into Germany with the intent to commit terrorist acts.
The draft updates Paragraph 89a of the German Criminal Code, which covers the preparation of serious state-endangering acts, and extends Paragraph 89c to cover new forms of terrorism financing. Additionally, Paragraph 99, concerning espionage, will allow covert investigations, including apartment surveillance and online searches, to counter the rising threat from foreign intelligence services, particularly in light of the war in Ukraine.
Justice Minister Stefanie Hubig (SPD) emphasized, “Extremists, terrorist networks, and authoritarian states are targeting us deliberately. We respond decisively by adjusting our criminal law to address threats from terrorism and foreign espionage.”
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