German Chancellor Friedrich Merz addressing bankers in Berlin, urging reforms in energy, pensions, and health insurance.
German Chancellor Friedrich Merz addressing bankers in Berlin, urging reforms in energy, pensions, and health insurance.
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Friedrich Merz urges SPD toward more reforms

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Chancellor Friedrich Merz has called on coalition partner SPD to lift blockades on reform projects. At an event of the German Banks Association in Berlin, he announced serious talks for the evening. Energy policy, pension reform, and statutory health insurance are in focus.

Chancellor Friedrich Merz voiced criticism of coalition work on Monday at the annual reception of the German Banks Association (BdB) in Berlin. "I expect the Social Democrats to also lift some blockades that we unfortunately have had repeatedly in recent weeks and months," he said. "I will talk very seriously with the coalition partner again this evening."

Merz cited as an example the power plant strategy of Federal Economics Minister Katherina Reiche (CDU). It provides for state funding for new gas power plants to serve as backups for renewable energies. The SPD demands more battery storage instead, while environmental groups criticize the construction. Vice-Chancellor Lars Klingbeil (SPD) recently warned Reiche against slowing the energy transition: "The expansion of renewable energies must not be stopped."

The chancellor also called for reforms in statutory health insurance to stabilize contribution rates, as well as in pension insurance. "The statutory pension insurance alone will at best still provide basic coverage for old age," Merz stated. He advocated expanding capital-funded occupational and private pension provisions.

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Discussions on X highlight tensions in the CDU-SPD coalition, with Merz urging faster reforms in energy, pensions, and health insurance. Reactions are largely critical and skeptical, accusing Merz of weakness against SPD blockades, pushing harmful cuts to social systems, and failing to deliver real change amid high energy costs and economic pressures. Some users call for breaking the coalition or cooperating with opposition parties.

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Chancellor Friedrich Merz presenting a reform package for growth to coalition members in a government setting.
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Chancellor Friedrich Merz faced interruptions and skepticism from union delegates at the DGB congress in Berlin. Speaking before about 400 attendees, he defended his reform agenda while DGB chair Yasmin Fahimi warned against rolling back labor rights.

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CDU parliamentary group leader Jens Spahn has proposed that the SPD jointly develop a draft for income tax reform. The aim is to relieve small and medium incomes without public disputes.

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