Speeding Up the Economy: Merz's Plan for a New Germany - Prioritizing Pension Reform
Economic overhaul endorsed: unveiling Merz's economic strategy - Economy restructuring move approved: Merz's proposed economic planning detailed
Ready to shake things up? Federal Chancellor Friedrich Merz (CDU) is all about it! He asserted after the coalition committee meeting that the much-needed depreciation options for businesses should be implemented pronto, applicable this year and also in 2026 and 2027. Simplified approval procedures and reduced bureaucracy are front and center for creating a sense of economic security in Germany.
"We aim to conquer the structural growth weakness of our nation," Merz stressed. "It's all about moving forward and overcoming the issues."
The Four-Page Solution with 60+ Moves
Together with the CSU and SPD, the coalition partners dropped a four-page plan with over 60 priority measures. According to this roadmap, changes should be evident by mid-year, making it crystal clear that Germany is on the move!
Some of these measures need to be approved ASAP, preferably before the summer break in July, Merz said. "Game on!" But rest assured, the coalition isn't planning on stopping there—more discussions await even beyond 2025. Merz described the coalition meeting as having an "exceptionally good atmosphere."
Lars Klingbeil, the Vice Chancellor and Finance Minister, echoed Merz's enthusiasm, declaring that "we need to accelerate things now." It's time for the people of Germany to witness change. "We're a coalition of enablers," Klingbeil added.
A Few Concrete Steps, but More to Come
While the "immediate program" includes only a handful of steps with specific timelines, there are some noteworthy dates: January 1, 2026 marks the VAT reduction for the catering industry, the increase in the commuter allowance, and the reintroduction of full agricultural diesel refunds for farmers.
Markus Söder, CSU leader, revealed that the black-red federal government was keen on tackling a "major pension package," which includes guaranteed pension levels, mother's pension, and early retirement pension. Söder also commended the rapport between the coalition partners, which is all about speed. "Speed, speed, speed" has now become the battle cry. The inaugural coalition committee meeting was a "strong start."
Merz Wants Perks from Special Funds Now
Merz emphasized that the legislation for the planned special funds—a 500 billion euro federal special fund for investments in infrastructure and climate protection, and a 100 billion euro associated special fund for the states—needs to be passed urgently.
The coalition has also agreed to create a commission to advise on potential electoral reform. The alteration of the electoral law used during the February federal election was a subject of concern for the Union.
The federal cabinet is also focusing on extending the rent brake and tightening immigration policy, including a two-year pause on family reunification for refugees without asylum status and the withdrawal of fast-track citizenship after just three years.
- Pension Reform
- Friedrich Merz
- Tax Cuts
- Digitalization
- Immigration Policy
- Frederick Merz, the Federal Chancellor, has added pension reform to the coalition's agenda, aiming to address issues such as guaranteed pension levels, mother's pension, and early retirement pension.
- In his push for speeding up the economy, Merz has called for the immediate legislative approval of special funds, totaling 600 billion euros for infrastructure and climate protection investments.
- As part of the new government's initiatives, Merz and the coalition partners plan to simplify taxation, particularly for businesses, and prioritize digitalization as a means to stimulate economic growth and development.
