(de-news.net) – Prior to the EU meeting in Brussels, German Chancellor Friedrich Merz (CDU) has urged a greater emphasis on social justice in addition to national security, economic reform, and European stability. Reductions to the EU’s proposed long-term budget, measures against trade-distorting practices, reforms to public administration, labor markets, and pensions, in addition to ongoing support for Ukraine are all part of his agenda. The opposition have challenged the government’s spending priorities, while German industry leaders have opposed proposals to suspend carbon pricing, highlighting tensions between industrial competitiveness and climate targets.

Chancellor Merz said Wednesday that the Federal Government would place greater emphasis on social justice alongside national security, arguing that both were essential to Germany’s long-term prosperity and stability. Addressing the Bundestag ahead of a European Union summit in Brussels, Merz pointed to the pressures created by geopolitical upheaval, armed conflicts and crises beyond Germany’s control. He maintained that neither security nor justice could be fully sustained in the coming years without significant reforms and a recognition of the challenges facing the country. The Government has proposed a broad package of reforms covering pensions, long-term care, labor markets, business taxation and economic competitiveness. Additional measures are intended to modernize public administration and reduce bureaucratic requirements.

Merz presented these initiatives as part of a wider effort to strengthen fairness while preserving the economic foundations of the German state. He defined social justice primarily in terms of equality of opportunity, rather than expropriation or redistribution at the expense of productive individuals and businesses. In his assessment, a policy framework that enables people to pursue opportunities while supporting economic performance is essential to maintaining prosperity, freedom and peace. The Government’s approach therefore links domestic reform with the broader objective of ensuring that Germany remains economically resilient amid international uncertainty.

Merz argues in favor of conditions for justice

Merz rejected the suggestion that national security and social justice should be treated as competing priorities. He argued that investments in defense capabilities and continued assistance to Ukraine were necessary to protect the rule of law, economic stability and democratic institutions. Those foundations, he said, were essential for freedom and for the conditions in which justice could develop. The Chancellor also disputed claims that military assistance diverted resources from domestic social programs. He maintained that funding for Ukraine did not come at the expense of German spending on welfare or education, presenting support for Kyiv as part of a broader effort to protect European security. His remarks placed defense policy within the government’s wider argument that external stability and domestic prosperity are interconnected.

Ahead of the two-day European Council meeting beginning Thursday, Merz renewed his call for European measures to counter international trade practices that undermine fair competition. He identified the reduction of strategic dependencies as a central priority for the European Union, emphasizing the need for a more resilient economic position in an increasingly uncertain global trading environment.

The initiative follows an earlier effort by Merz and French President Emmanuel Macron to establish a European instrument addressing competition-distorting practices. The proposal reflects concerns about the effects of international trade policies on European businesses and the bloc’s ability to maintain competitive industries. The issue is expected to form part of broader discussions about the EU’s economic position and its response to external pressures.

Opposition parties challenge spending priorities and the pace of reforms

Opposition leaders criticized the Government’s approach, particularly its emphasis on defense spending and the distribution of public resources. Sören Pellmann, parliamentary leader of the Left Party, warned that military expansion would absorb a growing share of the budget at the expense of schools, housing and long-term care. His criticism highlighted the dispute over how Germany should balance security commitments with domestic investment and social services.

Alice Weidel, leader of the Alternative for Germany party, called for Germany to end its assistance to Ukraine and resume purchases of Russian oil and gas. Britta Haßelmann, parliamentary leader of the Green Party, took aim at the Government’s broader political direction, arguing that it lacked ambition and a clear vision. She also linked declining public confidence to the perception that reforms increasingly translated into spending reductions, underscoring the political challenge of securing support for changes to the welfare system and public administration.

The European Council summit in Brussels is scheduled to address the situation in the Middle East, China’s export surpluses, high energy prices and continued support for Ukraine. Leaders will also examine the EU’s next long-term budget, which will cover the 2028–2034 period. Merz is seeking substantial reductions to the European Commission’s proposed budget of approximately 2 trillion euros. Budget negotiations will take place alongside wider discussions about Europe’s economic competitiveness, security commitments and policy priorities. The proposed reductions reflect Merz’s call for tighter spending at the European level, although the summit agenda encompasses several competing demands on the bloc’s resources.

German industry opposes suspending carbon pricing

Separately, the Federation of German Industries (BDI) has rejected proposals to temporarily suspend carbon pricing as European leaders prepare to discuss the future of the EU emissions trading system. Tanja Gönner, the organization’s chief executive, reaffirmed the industrial sector’s support for European climate targets and emissions trading, describing carbon pricing as a central market-based mechanism for reducing greenhouse gas emissions. Gönner argued that suspending the system would disadvantage businesses that had already invested substantially in decarbonization while benefiting companies that had not begun, or were unable or unwilling, to transition to climate-neutral production. In her assessment, removing the financial incentive to reduce emissions would weaken the position of early adopters and undermine the consistency of Europe’s climate policy.

Italy and the Czech Republic have called for a temporary suspension of carbon pricing to ease the emissions-related costs borne by European businesses. Their proposal reflects concerns about the pressure that climate-related expenses can place on industrial competitiveness. Gönner opposed the proposed suspension, arguing instead that policy should enable a broader range of companies to complete the transition without penalizing those that have already made substantial progress.

She maintained that Europe must balance emissions reductions with the need to preserve industrial competitiveness. Besides carbon pricing, additional policy instruments would also be needed to help businesses adapt. Reform of the emissions trading system is therefore expected to feature in discussions alongside negotiations over the EU’s next long-term budget, placing climate policy and industrial competitiveness among the issues dear to European leaders.