Coalition Races Against Summer Recess as Approval Ratings Hit Record Lows
10.06.2026 - 07:14:58 | boerse-global.de
Berlin – With chancellor approval at just 15 percent and polling that sees the AfD leading at 29 percent, Germany’s coalition government is gambling that a high-profile summit with business and labour leaders can breathe life into its flagging reform agenda. The meeting, scheduled for Wednesday evening in the chancellery, brings together four representatives each from employer associations and trade unions for three hours of what officials admit will be more a dialogue than a decision-making session.
Union (CDU/CSU) general secretary Carsten Linnemann described the gathering as a way to “stay in conversation,” stressing that no concrete outcomes were expected that night. His SPD counterpart Christian Klüssendorf echoed the caution, warning that “the country’s complex problems cannot be solved in just a few hours,” but insisting the encounter must not be a one-off. The summit comes as the federal budget faces a hole of roughly €20 billion and as the government’s own standing deteriorates: the CDU/CSU currently registers 21 percent, the SPD only 12 percent, while the far-right Alternative for Germany leads all parties with 29 percent.
Employers push flexibility as unions threaten street protests
The two sides have not met in this format since January 2025, and positions have hardened. BDA president Rainer Dulger and BDI president Martina Merz-Leibinger are among the employer representatives calling for a cap on social security contributions, corporate tax cuts, greater flexibility in working hours, and a higher retirement age combined with an expanded stock pension. Trade unions reject those demands outright. DGB chair Yasmin Fahimi opposes any weakening of the eight-hour workday and instead demands higher corporate and wealth taxes along with a steeper top marginal income tax rate. Fahimi has already warned of protests if the government shifts the burden onto employees. IG BCE chief Michael Vassiliadis expressed scepticism, noting that serious exchanges with employers had been absent for 18 months.
July deadline for reform package, €500 annual relief in sight
Wednesday’s summit is meant to prepare the ground. The real decisions are expected at a coalition committee scheduled for June 30 and July 1. By then, the government aims to have a comprehensive reform package ready covering pensions, health insurance, long-term care, and income tax. A specific measure already under discussion: relief worth roughly €500 per year for low- and middle-income earners. Separately, Health Minister Warken has already presented a savings plan that the cabinet has approved. The government is also awaiting a report from an expert commission on the future of pensions by the end of June.
SPD parliamentary leader Matthias Miersch made clear that the willingness of both social partners to compromise will ultimately determine which items reach the decision stage before the summer break. The draft for the 2027 federal budget is scheduled to be unveiled on July 6.
