The German government, led by Chancellor Friedrich Merz, is preparing for a two-day cabinet retreat next week focused exclusively on enhancing competitiveness and modernizing the state. Addressing the Bundestag during a general budget debate, Chancellor Merz confirmed that the retreat would yield “very concrete decisions” intended for subsequent introduction to the parliamentary body.
The timing of the retreat follows a week of intensive debate surrounding the 2026 budget, a period typically marked by exchanges between the ruling coalition and opposition parties. The Alternative for Germany (AfD), the largest opposition faction, initiated the debate.
Chancellor Merz also expressed a growing public appetite for substantial social reforms. He advocated for “fundamental reforms” within Germany’s social security systems and indicated a growing national consensus around the necessity for significant change. He voiced optimism concerning the increasing understanding that significant reforms are vital to upholding the social commitments made to citizens. The discussions in the Bundestag included criticism from AfD leader Tino Chrupalla, who raised concerns about potential intergenerational financial burdens.