Merz appeals for reform readiness in Bad Saarow and warns against political fringes

Merz combined the admonition with a call for more confidence. "We want to show now and must show together that we are capable of solving our country's problems." There is no reason for pessimism, he added. The country has the strength to master the tasks ahead, was the Chancellor's message.

Reforms without a "Big Bang"

At the same time, Merz warned against exaggerated expectations of the planned projects. "This is not an easy task," he said, referring to the upcoming changes. There will be no "Big Bang" with the reforms. With this, he dampened hopes for a rapid, comprehensive upheaval.

The Chancellor pointed to the necessary staying power: democratic institutions must be able to find long-term and sustainable solutions to the major challenges. This requires the readiness of everyone to put aside partisan games.

Pressure from the Left and Right

In his speech, Merz also addressed the political mood in the country. "We are pressed from the far left and from the far right, and many in between who fundamentally question whether our state is still capable of acting at all." The state has not been good enough in recent years, the Chancellor said. With this, he openly named the crisis of confidence in institutions.

The parties have also failed in this regard. "The parties were also not good enough in part." There is justified disappointment over delayed decisions at many levels. With this self-critical assessment, Merz sought to gain understanding for his reform agenda.

"It is now our task to become better, to regain trust, and to show that it can be done," Merz said. With this, he formulated the central claim of his government. Regaining trust is the prerequisite for the reforms to be accepted by the population.

Pensions and Taxes: Planned Reforms Before the Summer Break

Specifically, the federal government, composed of CDU/CSU and SPD, plans reforms in pensions and tax law before the summer break. This is intended to lay the foundation for the economic and social renewal of the country. The timeline is ambitious: key decisions must be made in just a few weeks.

However, resistance is brewing against parts of the reform plans. Trade unions and social associations warn of a dismantling of the welfare state. They see risks for employees, pensioners, and low-income individuals in the planned projects.

The East German Economic Forum is a regular conference that deals with the economic perspectives of East Germany. This year, the event focused on the question of how the state can regain its ability to act in the face of various crises. The report was broadcast on Deutschlandfunk on June 2, 2026.