Public Skepticism Runs High as Berlin Prepares for High-Stakes Social Partner Summit

Only 31% of Germans expect reform package by July. Merz convenes business and union leaders June 10 to address contested working hours, pension, and tax reforms.

Only 31 percent of Germans believe the government will push through its reform package before the summer parliamentary break in July. That low confidence underscores the challenge facing Chancellor Merz as he convenes business and union leaders for a three-hour summit on June 10.

The meeting, hosted by the Chancellor, is meant to address sweeping changes in economic and social policy. Yet both coalition partners have stressed it is a dialogue, not a decision-making forum. CDU General Secretary Linnemann described the session as a first step to "keep talking" but insisted that afterward politicians must produce concrete solutions and a clear roadmap by the summer recess. His SPD counterpart, Klüssendorf, cautioned against expecting joint proposals from the social partners at this stage and warned the talks must not be a one-off event.

The most contentious item on the agenda is a planned overhaul of Germany's Working Hours Act. The government wants to replace the current daily maximum working time with a weekly limit, giving employers more flexibility. DGB President Fahimi has condemned the move as an "ideologically misguided path" and vowed to present alternative proposals for economic stimulus based on infrastructure and energy investment instead.

Pension policy is another flashpoint. Employer associations are calling for a higher retirement age and a Swedish-style equity pension model, while unions reject any cuts and threaten protests. Linnemann expects initial findings from the pension commission as early as the week starting June 8 — three weeks before the original June 29 deadline. Meanwhile, the youth wing of the CDU, led by Winkel, wants to cap the upcoming pension increase from 4.2 to 3 percent to free up funds for student aid and parental leave.

Bundesrat President Bovenschulte warned against overloading the agenda with too many parallel projects. He urged the government to prioritise tax reform, warning that states could block legislation in the upper house if they face financial disadvantages. He added that pension reform could wait until the second half of the year.

The government plans to finalise all ready-for-decision proposals by the start of the summer break on July 10. A coalition committee is scheduled for June 30, with further decisions expected on July 1. The 2027 budget draft is due on July 6.

Behind the scenes, the SPD leadership is also pushing back against the latest draft of the care reform from Minister Warken, rejecting the creation of parallel insurance systems. With trust low and deadlines tight, the June 10 summit may set the tone — but not yet the outcome — for Germany's next wave of economic and social reforms.