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Merz’s coalition agrees on policy program aimed at boosting Germany’s economy – POLITICO

GenevaTimes by GenevaTimes
May 28, 2025
in Europe
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Merz’s coalition agrees on policy program aimed at boosting Germany’s economy – POLITICO
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The package contains no unexpected measures but brings back 62 highlights from the coalition agreement — which the government wants to have on track before the mid-July parliamentary summer break. 

This was the first coalition committee meeting between Friedrich Merz’s Christian Democratic Union party and Vice-Chancellor Lars Klingbeil’s Social Democrats, and lasted just a few hours. They agreed to hold such meetings as a regular fixture.

It was considered a good start by observers. Meetings of the previous government, led by Olaf Scholz, often lasted until the early hours of the morning and became more of a crisis instrument. Scholz’s government fell apart during a fractious coalition committee meeting on Nov. 6, 2024, leading to new elections this year.

Among the 62 measures agreed are tax changes including a reduction in the electricity tax and on-trend, regulation-busting moves: The national supply chain act will be abolished, for example, and the document states that the European supply chain act should be implemented “in a low-bureaucracy and enforcement-friendly manner.”

Besides economic issues, the program includes items on migration, electoral law, modernization of the state and a subject close to the heart of European Commission President Ursula von der Leyen: the hunting of wolves.

“It’s all happening now,” Merz said in a statement to present the program. 

Klingbeil, who also serves as finance minister, added: “We all want to see improvements quickly in everyday life, at work and in every region.”



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