“The autumn of reforms has long since begun”

"Our country is facing important decisions this autumn." Federal Chancellor Friedrich Merz made this statement during the general debate on the 2025 budget in the Bundestag. The Chancellor referred to the greatest challenges at present:

• First, he said that freedom is being threatened "by military force, by hybrid threats, by attacks on our democratic order".
• Second, he stated that Germany's economic model is under pressure from protectionism, high energy prices and a wave of new technologies.
• Third, he reported that social cohesion in Germany is being "openly called into question by political forces at home and abroad".

However, the Chancellor emphasised that Germany is a democratic, economically successful and socially responsible country subject to the rule of law. "We want to remain exactly what we are", he stated. But he said that "courageous reforms" were necessary for this to succeed, especially with regard to the social system. "We have to change structures. We need to reorganise things to ensure they continue to fulfil their purpose in the future," he announced. This, he said, has already started: "This so-called autumn of reforms has long since begun", Chancellor Merz said in summary.

The Federal Chancellor spoke about issues including …

... Defence

The Federal Chancellor said that Russia's war against Ukraine had long been felt in the member states of the European Union and NATO and was influencing everyday life. In this situation, it was important to "strengthen our defence capabilities" and bring allies and partners closer together. The Bundeswehr was to be made attractive again with voluntary military service, and the newly established National Security Council in the Federal Chancellery would "start its work soon", according to the Chancellor.

… Migration

Here the Chancellor emphasised: "We can have greater trust in our country." It has, he said, become fashionable to accuse politicians of being powerless. The Chancellor cited migration policy as an example. The announced migration turnaround "has been successfully initiated", said the Federal Chancellor in summary, stating that, compared to August 2024, the number of asylum applications in August 2025 had fallen by 60 percent.

... Welfare state

The Federal Chancellor also emphasised that reforms in the interests of fairness were unavoidable. The previous unemployment payment would be changed to a new basic income. The intergenerational contract, he said, also needed to be rethought. "Young people must not be placed under additional strain", said the Chancellor, adding that the older generation also needed to be able to enjoy their retirement in economic security. He said that the first measures had already been launched, such as the active and early start pension.

… Economy

"We have to invest", the Chancellor made clear. He said that the Federal Government had therefore initiated the first major reform of corporate taxation in 15 years to increase investment. He would also appoint a Chief Investment Officer who would serve as a central point of contact for foreign investors and promote Germany as a business location. The Chancellor also thanked the more than 60 initiators of the "Made for Germany" initiative, who want to invest over 600 billion euros in Germany. This was, he said, a strong symbol of large companies and confidence in Germany as a business location.