Merz champions reform course of black-red coalition in Bundestag

According to the federal government, the central component of the program is a tax reform with a relief volume of 10 billion euros. This is intended to relieve workers and give companies more flexibility. Merz emphasized that the coalition agreements aimed at more flexibility for companies, the preservation of the welfare state, and tax relief for employees.

In presenting the reforms, Merz pointed to current economic data. He cited the Federal Statistical Office, according to which many companies are ramping up production and order backlogs are rising. The chancellor considered this development an encouraging sign but did not yet speak of a breakthrough.

On substance, Merz characterized the past year as a political turning point. A great deal has happened in this first year, which represents a real new beginning for our country, he told the members of parliament. At the same time, he called on the coalition to resolutely implement the upcoming plans.

Economic situation and new beginning

With a view to the country's economic strength, Merz said: We are a strong country, economically, politically, and socially. He set the goal of creating a Germany that is economically strong, socially just, and capable of defending itself both internally and externally.

On the topic of health policy, the chancellor underscored the government's resolve. The coalition is determined to set this reform on its way, said Merz with reference to the plans of Health Minister Warken. To stabilize health insurance contributions, the reform must be passed swiftly.

Merz also found clear words regarding the political fringes. He accused radical parties of wanting to divide the country and lead it into the abyss: "aber sie gestalten nicht, sie zerstören. Sie spalten unser Land und würden es, sollten sie politische Verantwortung in Deutschland übernehmen, in den Abgrund führen." These forces purportedly offered simple solutions but divided society, the chancellor continued.

Distancing from the political fringes

The counterpoint to this, he said, is the political center. Die Mitte liefert, sie arbeitet und sie erfüllt vor allem den Auftrag aus unserem Grundgesetz, said Merz. Democracy thrives on the balancing of interests that the government makes possible. At the same time, he called for unity: Aber wir sind stark genug, diese Angriffe auf unsere Freiheit und auf die Stabilität unseres Landes gemeinsam zurückzuweisen.

Merz also pushed back against criticism of the coalition's compromises. Man gehe Kompromisse ein, manchmal an der Grenze dessen, was man für vertretbar halte, he said. However, the agreements reached by the coalition last week showed that different parties could come together to make the country better.

In the Bundestag, the plan faces resistance. The opposition is trying to prevent by all means the vote planned for tomorrow in the Bundestag, Merz said. The Greens announced that they wanted to stop Health Minister Warken's health package.

Resistance from the opposition

The Greens and The Left have filed urgent applications with the Federal Constitutional Court against the health reform. They criticize, among other things, the short review period for the law, which runs to several hundred pages, and are threatening further lawsuits.

The federal government is nevertheless sticking to its timetable. Following the debate on the government declaration, parliament deliberates into the night before the Bundestag convenes tomorrow for the last time before the summer recess.

On the margins of the debate, Merz pointed to the foreign policy dimension. The reforms are also a prerequisite for Germany to continue fulfilling its international obligations. The trip to the NATO summit made clear that the country's alliance capability also depends on economic strength.

The chancellor also stressed that only the existing coalition of CDU/CSU and SPD could provide reliable answers to the currently difficult situation. Nur diese Koalition aus CDU/CSU und SPD sei in der Lage, die anstehenden Aufgaben zu schultern, said Merz. Other configurations would not provide this reliability.

Overall, observers assessed the speech as programmatic. Merz had traced the federal government's reform course without presenting concrete new measures beyond the already announced package. At the same time, he had sharpened the course of demarcation from the fringes.

Outlook on the votes

Speaking times were tightly scheduled: 20 minutes for the declaration, 90 minutes for the subsequent debate. Parliament deliberated on the chancellor's address on Thursday; Friday's agenda features the last regular sitting week before the summer recess.

With the government declaration, Merz is seeking, in his own words, the connection between economic renewal and social cohesion. He warned that democracy becomes vulnerable when the state loses its capacity to act. The coalition must therefore deliver now.

The chancellor closed his speech with an appeal to the members of parliament to support the reforms. The coalition had agreed on measures intended to strengthen the country. Now it was a matter of passing them through the parliamentary process.

During the day, citizens were able to follow the government declaration and the subsequent debate via livestream. The video of the declaration is roughly three and a half minutes long; the full debate was broadcast live.

The next key political decisions are expected as early as the following day. The Bundestag will then vote, among other things, on the controversial health package, against which the Greens and The Left have already taken action before the Federal Constitutional Court.

With a view to the summer recess, Merz announced that the coalition wanted to use the time to prepare further plans. This includes the implementation of the tax relief, which is to be carried out in several stages.