Despite historically low approval ratings, Chancellor Friedrich Merz (CDU) intends to stick to his reform agenda. Calling the low public acceptance “a source of additional motivation,” he stated during the ARD Summer Interview that it reinforces the necessity of making certain decisions that may be unpopular.
Regarding continuously high electricity and energy prices, Merz declined to set a specific target date for when the government would successfully counteract the surge. He attributed the high costs, among other factors, to the phase-out of nuclear power policies decided by previous governments and long-term guaranteed feed-in tariffs, policies he feels he can no longer fully correct. As countermeasures, he mentioned the electricity price brake, the industrial electricity price, the power plant strategy approved by the cabinet and sanctioned in Brussels, and long-term gas supply contracts spanning 10 to 15 years.
The federal government will not extend the fuel discount that expired on June 30th, arguing that permanently subsidizing oil prices is unsustainable. Merz noted that global prices are currently tied to the conflict in the Middle East, and a reopening of the Strait of Hormuz would lead to falling energy costs. Furthermore, regarding the established 2038 coal phase-out, Merz stressed that the government will not engage in discussions about extending operating periods in 2026.
Merz defended the sharp increase in defense spending, stating that security and peace take precedence over other expenditure categories. His argument was that social benefits like the parental allowance are meaningless if freedom is lost. In response to criticism about an alleged “gold rush mentality” in the defense industry, he announced a review of procurement procedures, aiming to orient itself more closely toward cost-efficient methods successful in Ukraine. While the NATO spending target of 3.5 percent of GDP (plus 1.5 percent for infrastructure) could theoretically be lowered given a change in the threat environment, he currently sees no reason to do so.
Concerning the discovery of a drone packed with explosives at Leipzig Airport-for which several security experts point to Russia-Merz promised a timely reaction. This response will be coordinated with the European Union and NATO partners and is expected to be announced “in the next few days.”
When asked about the future’s leading industry, Merz offered no single sector, instead emphasizing the cross-industrial use of artificial intelligence. He noted that special growth opportunities exist in crafts, small and medium-sized enterprises (SMEs), and medical technology and pharmaceuticals, calling the healthcare sector the fastest-growing economic segment even today. The Chancellor remained noncommittal about the question of increasing taxes on capital and wealth versus labor, stating he could not yet answer that question given the context of the “fourth technological revolution.”
On the topic of the potential first female Federal President, Merz stated that gender “is less important than personality,” but he admitted that he could “very well imagine” a woman in office. He concluded that the Federal Assembly decides on the successor, whose composition will also be affected by the state elections in September.
