The key facts

  • Merz announced a large-scale program of infrastructure and defense modernization
  • More than 500 billion euros promised for defense by the end of the decade
  • ZDF poll: 59% consider the reforms wrong, 80% — the distribution of costs unfair

Merz on the reform course

German Chancellor Friedrich Merz on Monday, October 19, once again confirmed the need to continue the government's reform course. Speaking before business representatives at the Invest in Germany summit, he named among the priorities the reduction of bureaucratic barriers, digitalization of public administration and reform of the social insurance systems. Negotiations behind closed doors will continue on Tuesday.

Investments in modernization and defense

“We are investing in the restoration and modernization of our infrastructure and our defense capabilities,” Merz said. According to him, Germany is beginning “the largest modernization in its recent history,” and in the coming years the country will direct funds to the restoration and modernization of infrastructure, green energy and climate initiatives. He called on investors to join this process. Separately, the chancellor promised that by the end of the decade more than 500 billion euros will be allocated to strengthening defense capability and modernizing military infrastructure. The reforms, he emphasized, are a response to “the challenges of a generation, which we must answer with the efforts of an entire generation.”

Criticism in society

According to a poll by public broadcaster ZDF published on October 8, the majority of Germans believe that Merz's reforms are going in the wrong direction, and the chancellor himself has fallen to a personal anti-record in popularity. 59% of respondents believe that the changes planned and partially adopted by the coalition in the sphere of pensions, healthcare and long-term care are going “in the wrong direction,” and only 30% consider them correct. A majority among supporters exists only for Merz's CDU/CSU bloc (66%). On the distribution of the cost burden: 80% called it unfair versus 12% who consider it fair. In addition, 77% do not believe that the government will make an important contribution to solving problems through changes to social insurance.