During discussions on reforming the welfare state, Federal Minister of Economics Katherina Reiche (CDU) once again urged a relaxation of job‑termination protections. Speaking to RTL and ntv at the Munich Security Conference, she warned that the current labour market “protects workers, but it also blocks necessary adjustments”.
Reiche noted that the coalition must explore ways to increase flexibility, especially for well‑paid executives, while still safeguarding lower‑income groups. “If we can discuss these adjustments-say, in the area of senior management-while protecting those on the lower end, we’ll have the flexibility we need to navigate the structural changes ahead. That is a conversation we must have within the coalition”.
She expressed relief at the remarks of US Deputy Secretary of State Marco Rubio, praising him for sending “a signal of cooperation” toward Europe and recognising the continent’s value. According to Reiche, Rubio highlighted European frailties that, honestly, the EU has also identified and is working to address, and most importantly, he has reinforced NATO and the broader defence alliance.
On trade and multilateral agreements, Reiche highlighted European progress: “We are finally securing free‑trade accords we’ve waited decades for. After almost 25 years of work, the Mercosur agreement is now finalised. We also have a free‑trade agreement with India, and agreements with Malaysia, Indonesia, Australia, and the Middle East are on the horizon-we ought to wrap those up swiftly”. She clarified that while she’s not convinced Rubio dismisses trade, his definition and priorities differ. Reiche warned that tariffs are harmful, noting declining consumption in the United States as evidence. “It’s about establishing a reliable framework, and that’s what we’re building behind the scenes”.