(de-news.net) – In order to maintain fiscal stability and rebuild public trust, the Minister-President of Saxony, Michael Kretschmer (CDU), has urged Germany’s federal coalition to expedite and deepen structural reforms.
Kretschmer called on the Federal Government to implement rapid and far-reaching changes, warning that continued delays could ultimately endanger the governing capacity of several federal states. Kretschmer argued that only limited adjustments would no longer be sufficient and urged the federal black-red alliance to develop an entirely new policy framework capable of addressing the country’s mounting structural challenges.
Kretschmer maintained that Germany’s reform agenda should prioritize economic competitiveness above all else by reducing labor costs, lowering energy prices, and easing bureaucratic burdens on businesses and employers. He also argued that ideological debates centered on class conflict had become ineffective and unproductive, particularly in relation to the SPD and labor unions. At the same time, the Saxon premier welcomed Chancellor Friedrich Merz’s (CDU) proposal to convene talks with business representatives and union leaders at the Chancellery in early June, stressing that only a coordinated reform package supported by both sides of industry could restore public confidence in the government’s capacity to manage the country’s increasingly serious problems.
A push for economic competitiveness and coordinated measures
Before the summer recess, the Federal Government intends to adopt a broad reform package addressing long-term care, labor market policy, pensions, taxation, and deregulation measures. Kretschmer, who also serves as deputy CDU chairman, expressed dissatisfaction with both the current pace and the overall structure of the process. He warned against repeating the shortcomings associated with earlier welfare-state reforms, arguing that the projected savings would still fall short of what financially strained municipalities require. According to Kretschmer, the federal government will eventually have to choose between compensating local governments for an expected financing gap of 30 billion euros or scaling back social benefits introduced over the past decade.
Kretschmer also linked the political balance in eastern Germany directly to the success of the reform effort. He cautioned that another political disappointment would likely strengthen Alternative for Germany ahead of the September state elections in Saxony-Anhalt and Mecklenburg-Vorpommern, where the party currently holds a 40 percent lead in opinion polls. He argued that such an outcome would intensify concerns about the effective governance and administrative stability of entire federal states.
Audio: TTSFree
