Federal Chancellor Friedrich Merz (CDU) has called for extensive reforms and changes during an appearance before the Federal Congress of the German Trade Union Federation (DGB). "We must change ourselves to preserve what is important to us together," the Chancellor said in his speech on Tuesday. Accompanied by boos and whistles from some DGB delegates, Merz also reaffirmed plans for a reorganization of the statutory pension system.
"We must strengthen the two pillars of funded pension provision," he said, referring to occupational pensions and private provision. "Three strong pillars - statutory, occupational, and private - will enter into a new relationship," he announced. Only in this way would pension provision remain secure in the long term. "These reform plans are not a threat, they are a great opportunity," the Chancellor added. Above all, they were "necessary" due to demographic developments.
"I also expect willingness to change from the workforce," Merz said. "Only in this way will we be able to maintain our welfare state." This would also mean cuts: "Everyone will have to give something. In return, we will receive a lot," namely security and quality of life for future generations as well. The Chancellor emphasized, however, that he did not belong to those who wanted to "jettison the welfare state as ballast." "That will not happen with me," he assured.
It had long been neglected to "modernize our country." These "accumulated problems" now came together with new crises and challenges from outside, Merz justified the need for reforms. There was "pressure to act that has not been this high in decades." Germany must "pull itself together and tackle the structural problems that we have been putting off for many years."
Current economic growth of around half a percent was "simply too little for our prosperity," the Chancellor warned. Without growth, there would be "no efficient welfare state, good healthcare, an adequate pension," the Chancellor warned. "Social security can only exist with economic strength."
Merz also defended the planned healthcare reform against criticism. The expenditures of statutory health insurance funds had for years "grown more strongly than revenues" without achieving more service and quality. The reform package "demands something from everyone," he admitted, but it meant "that contributions can remain stable for a long time."
Merz praised the role of trade unions and committed himself to maintaining and expanding employee co-determination. "I want to preserve this culture of cooperation," he said. All parties involved must "remain oriented toward the common good." The Chancellor's speech was received with rather brief applause.
DGB Chair Yasmin Fahimi, re-elected on Monday, confirmed "that we are in times of great upheaval." The unions were also "not brakemen or preventers," but "part of the creative force of this country." However, Fahimi insisted on "fair burden sharing" in reforms, to great applause.
Fahimi once again rejected the government's planned expansion of daily working hours. "There will be no growth through social cuts, nor through changes to the Working Time Act," she made clear. There must be no reforms that "mean a reduction in protective rights."
Regarding pensions, Fahimi pointed out that not everyone could afford private provision. This also had to be paid for by employees alone, unlike statutory or occupational provision. In general, there were in Germany "many people who cannot bear additional burdens," the DGB chair warned against additional cuts.
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