The leaders of Germany's black-red coalition met with representatives of trade unions and employer associations at the chancellery on Wednesday evening, holding talks for three and a half hours on the government's reform agenda. As announced in advance, no concrete decisions were taken. The government nonetheless described the meeting as a signal of unity ahead of difficult decisions to come.
Government spokesman Stefan Kornelius said after the meeting that talks had been conducted "in a constructive and focused atmosphere." He said the discussions covered four subject areas: "the situation in the labour market, the stability and security of the social insurance systems, cutting red tape, and tax policy."
According to Kornelius, representatives from business and the unions expressed their readiness to "accompany the reform process constructively." He said "further talks have been agreed" to that end, though the format and timing remained open.
Kornelius said there was agreement among participants "that Germany as a business location faces major challenges." He added: "Technological change, demographic shifts, and the many crises in the world demand decisive steps towards more growth and new value creation." All sides also acknowledged "that the social systems need to be reformed and the burden of bureaucracy reduced."
There was further consensus, Kornelius said, "that additional steps to secure jobs and improve Germany's attractiveness as a business location must be tackled swiftly and decisively." This included efforts to improve Germany's competitiveness, "for example through reducing energy costs and offering tax relief to workers."
The employer associations and unions present did not comment publicly immediately after the meeting. They had indicated beforehand that statements would likely follow on Thursday. CDU, CSU, and SPD plan to take formal decisions on the planned reforms at a coalition committee meeting on 1 July.
The agreement to continue the talks represents a notable success for the SPD. SPD parliamentary group leader Matthias Miersch had called on Tuesday for the dialogue with the social partners not to remain a "one-off." Party sources said after the meeting that the SPD was satisfied with the results, and that common ground had been found on the topics of energy, taxes, cutting red tape, and innovation.
"Good solutions emerge through dialogue," Chancellor Friedrich Merz (CDU) wrote on X at the start of the meeting. Returning Germany to a growth path was, he said, "of the highest priority in the coming weeks."
Merz had also expressed hope over the weekend that the unions and business associations would jointly present proposals. The employers' side had stated on Tuesday that it expected the meeting to set priorities and a timetable for the reforms. "Our country needs reforms," CSU leader Markus Söder wrote on Instagram as the meeting got under way. "We must move forward together."
From the business side, the heads of the employers' association BDA, the industrial federation BDI, the chambers of commerce and industry body DIHK, and the Central Association of German Crafts (ZDH) attended the summit. The unions were represented by the leaders of the German Trade Union Confederation (DGB), the service sector union Verdi, IG Metall, and the mining, chemicals and energy union IG BCE.
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