Federal government
German government finalizes 2027 health reform draft with 16.3 billion euro savings target
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Following Chancellor Merz's announcement that the bill was practically ready, the German government finalized its health reform draft on April 28, targeting 16.3 billion euros in savings from 2027—down from an initial 19.6 billion—to address a 15.3 billion euro deficit at statutory health insurers. The Greens decry it as a burden on insured people and companies, while Health Minister Nina Warken calls it balanced. Cabinet approval is set for Wednesday.
President Luiz Inácio Lula da Silva signed a provisional measure on Tuesday eliminating the 20% federal tax on international purchases up to US$ 50 from platforms in the Remessa Conforme program. Companies including Amazon, Shein, Shopee, AliExpress, Magazine Luiza and Mercado Livre have already removed the charge. The change reverses a 2024 Congress decision.
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About 76 percent of respondents are dissatisfied with the work of the black-red federal government. An Insa poll for «Bild am Sonntag» also found that 58 percent do not believe the coalition will last until 2029. The AfD leads in the polls with 28 percent.