Berlin’s black‑red coalition plans to launch the announced reforms in three stages, says Jens Spahn, chair of the Union (CDU) parliamentary group. “First, on Monday the financial commission for statutory health insurance will present its proposals. Then legislation will follow quickly” Spahn told the “Welt am Sonntag”.
He outlined the remaining steps: by the end of April the key points for the 2027 budget must be in place, including an “economic revival agenda” that offers relief on income tax, social contributions, bureaucracy and energy costs. Finally, the retirement commission is due to lay out its findings at the end of June, after which the coalition should decide swiftly on implementation.
Spahn tempered expectations about cutting both taxes and social contributions. “Both can’t be slashed on a large scale simultaneously” he said. “We have to prioritize. Cutting social contributions is strongly seen as a lever to boost competitiveness”. His goal is to bring wage‑related costs below the 40 % threshold. “That is a decisive factor for investment decisions. Low energy prices matter, but labour costs are typically the largest expense block for companies” he explained.
Regarding the massive burden of health care costs for basic‑needs recipients that weigh heavily on public finances, Spahn stated that it makes sense to finance these costs entirely from tax revenues rather than from contributions. “The truth is, those €12 billion will still have to be taken from the federal budget, which is already in deficit” he said. “Simply shifting the cost will not solve the problem”.