According to Friedrich Merz of the CDU, the US government has approved the sale of extensive Tomahawk cruise missiles to Germany. He stated in a government declaration to the Bundestag on Thursday that this transaction successfully closes “an important strategic gap in our defense.” Furthermore, Merz announced that efforts will be made simultaneously to develop and station independent European defense systems. Both sides reportedly reached an agreement on this matter during a recent G7 summit in Ankara, Turkey.
Merz also promoted the recent reform package approved by the coalition committee. He noted that these negotiations primarily aimed at providing “more flexibility for our businesses,” while simultaneously protecting the social welfare state and offering tax relief to employees. Regarding pension policy, the Chancellor addressed the need to “rebalance the relationship between generations” fairly, advocating for the utilization of “capital market opportunities” to lower contribution rates in the long term while increasing the level of benefits.
In addition to the social policies, Merz revealed that proposals to streamline tax law are expected by autumn, including the introduction of a pre-filled digital tax return. On the labor market, the coalition plans to encourage employers to hire new staff by allowing for indefinite contracts to be extended for up to four years for specific needs.
The Chancellor also highlighted planned measures for bureaucratic reduction, which aim to abolish reporting requirements in principle unless they are newly justified. Merz stressed the importance of local government, announcing that the federal government will cover a high percentage of costs related to state service laws moving forward.
