Merz pushes sweeping reform agenda for Germany ahead of EU summit

Chancellor Friedrich Merz is addressing lawmakers ahead of a key EU summit

Members of parliament are set to debate both foreign policy and major domestic reforms

The speech comes after the chancellor met unions and business leaders to discuss proposed social and economic reforms

Here are the latest headlines from Germany on Thursday, June 11:

Chancellor highlights German 'success stories'

German Chancellor Friedrich Merz has been pointing to economic successes while urging action to tackle major challenges.

In a speech to parliament, he said the aerospace sector created 10,000 jobs and more than 3,500 startups were founded nationwide.

"There are success stories in Germany," Merz said, while warning of pressures from global tech competition and demographic change.

Merz said the country must become stronger across all areas.

"We are leveraging our existing strengths and potential to turn things around for everyone, and to reposition ourselves more effectively across the board," he said.

What reforms is Merz's government proposing?

The package of reforms is aimed at making systems in Germany cheaper to run, while boosting growth, and adapting to an aging population, military threats and economic competition.

From what's been announced and discussed so far, the main strands are:

Health: The government plans to tighten spending in public health insurance, meaning some services could be reduced

Pensions: The system is to be adjusted to cope with an ageing population, meaning that people end up working longer

Defense: Germany plans to increase military spending and improve combat readiness

Labor market: The aim is to boost employment, fill skills gaps and make work more attractive

Energy/industry: Subsidies or price caps to lower energy bills for companies

Taxes: Lower income tax for workers, possible relief for companies, and changes to encourage investment

Bureaucracy: Faster permits for building and business projects, fewer forms, and simpler rules

Investment: More spending on roads, rail, digital networks and green projects, with fewer delays

EU/trade: Push to cut EU rules for businesses and take a tougher line against unfair trade from countries like China

Merz urges parliament to back his reform agenda

German Chancellor Friedrich Merz has urged lawmakers to take responsibility for upcoming social reforms.

In his parliamentary address, he said the cabinet would present proposals for major reforms in the coming weeks and months.

Merz said parliament would then decide "together" on the country's future, stressing that responsibility lies with all members.

"It is our country that is grappling with itself," the Chancellor said. "We all have a responsibility to listen to, and then act upon, a serious analysis of the problems and serious proposals for solutions."

He said this was true even if "we do not always agree on every single point."

"We all have a responsibility to develop our country further so that freedom, prosperity, justice, social security, and peace continue to prevail here in the future."

Merz warns Germany must recognize key risks

German Chancellor Friedrich Merz has warned Germany is "in denial" about security threats, technological change and an ageing population.

He said the government would roll out further reform measures in the coming weeks and months.

Merz said Europe benefits more than any other region from open global markets, but stressed the need to enforce fair trade rules.

He added that industrial artificial intelligence has been kept exempt from EU regulation and said deregulation for businesses across the bloc should be launched by the middle of 2027.

Berlin reports 'constructive' tone in reform talks

Chancellor Friedrich Merz's speech comes after his spokesman reported a "constructive" atmosphere in talks with unions and employers on planned reforms.

Officials said the three-and-a-half-hour meeting on Wednesday evening ended without decisions but with agreement to continue discussions.

Government spokesperson Stefan Kornelius said talks focused on the labor market, social security, cutting bureaucracy and tax policy.

Participants agreed Germany faces major challenges, including technological change, demographic shifts and global crises, requiring decisive steps to boost growth and jobs.

There was also broad agreement that social systems need reform and bureaucracy must be reduced.

Business groups and unions signaled they are ready to support the reform process, with further talks planned, but the details remain unclear.

Merz to outline EU summit agenda in parliament

German Chancellor Friedrich Merz is about to deliver a government statement in the lower house of parliament about the upcoming EU summit.

Lawmakers will debate his remarks for an hour after the speech.

The summit in Brussels next week is expected to focus on Ukraine, the Middle East and the EU's long-term budget for 2028–2034.

After the debate, parliament will take up several government bills, including changes to anti-discrimination law and an extension of Bundeswehr overseas missions.

Lawmakers are also set to vote later in the evening on tax-related changes and discuss a proposal to suspend a planned pay rise for MPs.