Government presents box of reforms – DW – 10/09/2025

Germany’s ruling coalition presented its final agreement to a package of reforms that has been heavily promoted for months by Chancellor Merz.

The marathon discussion lasted for most of Wednesday and well into the night, amid claims that more left-leaning members of junior coalition partner SPD have significant opposition to many of Merz’s plans.

However, the parties showed a united front on Thursday morning, announcing tighter restrictions on social welfare payments, changes to the pension system and new subsidies for electric vehicles in response to competition from China.

“We will significantly strengthen the obligations to cooperate and we will also significantly increase the possibilities for sanctions,” Merz said of the changes to the German welfare system.

German automakers are expected to press for new incentives to revive demand for electric vehicles during key talks with Chancellor Friedrich Merz in Berlin. Sales have declined and jobs have been cut amid increasing competition from China.

Read more: German Chancellor calls auto summit as carmakers slash jobs

Good morning! From the DW newsroom in Bonn.

Today, the German governing coalition is expected to present the results of its closed-door summit amid rumors of growing tensions between Chancellor Friedrich Merz’s centre-right Christian Democrats (CDU) and their junior coalition partners, the centre-left Social Democrats (SPD).

Merz will then hold a major meeting of car industry representatives as he tries to revive Germany’s leading automotive sector.

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