Business and Unions Square Off at Chancellery as Reform Timetable Targets July 2026
11.06.2026 - 01:43:09 | boerse-global.de
A crunch meeting between Germany’s top business associations, union leaders and Chancellor Merz kicked off at 7 p.m. Thursday inside the Chancellery, but the guest list was already drawing fire. Smaller industry groups and opposition politicians say the three-hour, closed-door session excludes them — yet its results are supposed to feed directly into a coalition committee meeting on 30 June 2026 that will draft a final reform package due by the start of the summer recess on 10 July.
The Chancellery distributed a discussion paper of 21 guiding questions covering working hours, the retirement age and tax simplification. No binding decisions were expected from the evening, according to government spokesman Kornelius, who called it a one-off format to consult social partners. “A continuation is not planned,” he added. SPD secretary-general Klüssendorf echoed that line, telling reporters the gathering was intended solely as an exchange of views. Political decisions, he said, would be made in the proper committees later.
Employers entered the room with a hard deadline in mind. The BDA, BDI, DIHK and ZDH jointly demanded a fixed timetable for structural reforms aimed at boosting economic growth. BDA president Dulger singled out pension policy before the talks, pointing to the projected cost increases of 4.2% this year and 4.7% in 2027 — combined costs he said exceed 18 billion euros. “We cannot simply accept that,” Dulger warned, calling for a return of the “sustainability factor” and an adjustment to the statutory retirement age. CDU secretary-general Linnemann went further, talking about “radical solutions” that include a systematic rollback of subsidies.
Union leaders pushed back hard. DGB chair Fahimi cautioned against a one-sided focus on austerity. Ver.di chief Werneke rejected any intervention in the pension system, particularly decoupling pension increases from real wage growth. VdK president Bentele instead proposed a wealth tax or an overhaul of inheritance tax to put social security financing on a more stable footing. Labour representatives also refused to entertain further flexibility in working hours and demanded a higher top marginal tax rate. The “Wisconsin Five” economist Grimm urged the government to produce a consistent reform package that primarily stimulates growth.
The opposition and Mittelstand representatives — the small and mid-tier businesses that form the backbone of Germany’s economy — criticised their absence from the table. They accused the Chancellery of privileging larger lobbies and leaving out voices that often feel the direct pinch of regulatory change. With the July 2026 deadline now set, the pressure is on the coalition committee to turn tonight’s talking points into a legally workable agreement.
