Hard interventions in health, benefits and pensions were announced by the Chancellor Germany, Friedrich Mertzspeaking at a meeting of the German Parliament today (17.9.25) on the budget of 2026.
German Chancellor, Mertz, LMen of months after voting for an unlimited increase in defense spending (through complete relaxation of the constitutional debt brake), he announced a “autumn reforms” and specifically referred to the pension system, mandatory health insurance, public income.
The reforms “concern nothing less than justice. And a new consensus on what justice means in our time, “Merz said, adding that” reforms are inevitable. “
Pensions
The Chancellor warned that the retirement-genesis contract (today’s employees are funding today’s pensioners) must be “redesigned”. This reform of the welfare state is imminent. “We have promised to deal with it with boldness,” he noted. These include, inter alia, the introduction of the active pension (retirement income of EUR 2,000 per month tax -free) and early pension.
Mertz clearly opposed further increases in pension contributions for employees. At the same time, he stressed that pensioners should be able to “enjoy financial security”.
Health – care
Mertz wants to “better use” workers’ contributions. The structures should change, he noted.
This could mean, among other things, that there should be Fewer health insurance companies in the future, comments Bild.
Citizen allowance
German Chancellor again stated that Citizen allowance (something like the Greek “Social Solidarity Income”) will be “radically restructured to a new basic security” (as stated in the Coalition Agreement). Anyone who can work should really “work” in the future.
However, he did not go into more details. Chancellor too He did not reiterate recent statements that about 5 billion euros should be saved by 2026.
Taxes
Mertz has avoided making specific statements about the current debate on inheritance tax (the SPD wants to tax rich heirs heirs). However, he stressed: “We cannot keep our social promises by taking as much as possible – as wealthy as possible.”
In this way, the Chancellor leaves the door open to impose at least a slightly higher taxes on wealthy heirs in the future, according to Bild.
Military service
Mertz strongly warned that Germany should become capable of defending it. As a result, the government massively increases the defense budget and introduces a new military service.
The Chancellor made it clear that military service could quickly become a universal mandate. The government is making the “initially voluntary military service” so attractive that the Federal Army (Bundeswehr) can recruit as many young troops as possible.
Mertz demanded patience with reforms and announced that much should be changed in the coming years. “The autumn of reforms will not be the last season in which we will change the country for the better. It will be followed by a winter, one spring and another autumn reforms. ” Mertz said that he would surely support exactly that.