Chancellor Friedrich Merz (CDU) has pledged to tackle decisively the reform package drawn up by the coalition committee. "We intend not only to take what we have written down seriously, but also to implement it," he said on Thursday evening on the ZDF programme "Maybrit Illner." At Wednesday's coalition committee meeting, "fundamental decisions" had to be made. "And I think we made them well."
The longest discussions had been about tax policy, Merz continued. This is because the scope for manoeuvre in the public budget is "not as large as we would like it to be." He himself would also have "wished for more" in this respect, but wishes and reality also have to align. The chancellor pointed to extensive state responsibilities that Germany has to finance.
The income tax reform is set to take effect from 1 January 2027. The focus is on middle and lower incomes, according to the coalition committee's resolution paper. A tax relief of 600 euros per year is being targeted for average earners. Asked whether this constitutes significant relief, Merz said: "I believe so. And yet anyone criticising it today can find good arguments for why it isn't enough."
Fundamentally, it is important that the economy grows again, Merz said. "With a stagnating economy and rising prices, you can no longer achieve greater prosperity."
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