Berlin, April 29, 2026 (AFP)
German Chancellor Friedrich Merz on Wednesday touted planned healthcare reforms and a deal on the 2027 budget as proof that his fractious and increasingly unpopular coalition government can deliver results.
However, when asked about the coalition's ability to last until the end of the legislative term, Merz acknowledged that "no one can guarantee anything".
The conservative leader called the health reforms -- which were approved by the cabinet in Berlin after months of debate -- "one of the most significant social welfare reforms of recent decades".
Merz has come under growing pressure as he has struggled to deliver on his promises of sweeping reforms and a revival of Germany's stagnant economy.
Wednesday's deal "demonstrates that this coalition is willing and able to make decisions", Merz told reporters in Berlin after the cabinet meeting.
"We can compromise and we negotiate, even if things get a little shaky at times," he added. "That is simply part of the process."
The conservative chancellor rode to power on widespread public discontent with the squabbling three-way coalition of his predecessor, Olaf Scholz.
But Merz's own popularity has collapsed as he approaches the one-year mark in office, with a poll released on Tuesday showing 83 percent of Germans are dissatisfied with his performance.
- 'Sometimes contentious' -
Tensions have reportedly ratcheted up in recent weeks between Merz and his junior coalition partners, the centre-left Social Democrats (SPD), as Merz's conservatives have pressed for tough cuts to social programmes.
Health insurance expenses have risen steadily in Germany as the country ages and costs for care rise.
"We had to stop this trend to keep the system affordable overall," Merz said Wednesday, saying that a 15-billion-euro ($18 billion) deficit looms by 2027 without the reforms, which could reach 40 billion euros by 2030.
Merz referred to "discussions that are sometimes contentious" between partners, but nonetheless described his coalition as "determined and capable of acting".
Several recent opinion polls have shown Merz's conservative bloc losing ground and clearly trailing the far-right Alternative for Germany (AfD).
A Forsa poll published Tuesday put the AfD in first place with 27 percent, compared with 22 percent for Merz's CDU/CSU.
Earlier this week, an MP from Merz's party, Christian von Stetten, made headlines by saying at a business event that the coalition would "definitely not" last the full four years of its term, according to a video published by the Bild daily.
The cabinet also signed off on a framework for Germany's 2027 government budget on Wednesday, and Merz said reforms of the pension system would be next.
- 'Passionate discussions' -
Finance Minister Lars Klingbeil, an SPD leader who also serves as vice-chancellor, also said Wednesday that an income tax reform slated to take effect in 2027 will be discussed in the coming weeks.
The change is intended to reduce the tax burden by "several hundred euros per year" for low-income households and increase contributions from higher earners, Klingbeil said.
The draft budget bill provides for an increase in spending to 543.3 billion euros, including 105.8 billion euros for the military.
Klingbeil acknowledged "passionate discussions" and sharply "conflicting positions" in the coalition, but said that was a normal part of politics.
Ex-chancellor Scholz's coalition collapsed in November 2024 after months of public bickering and deadlock over how to close major holes in the budget.
"We're currently in a period where we're facing extremely serious crises that we didn't cause, but whose effects are all around us and impact the policies we make," Klingbeil said.
"We bear an incredibly high level of responsibility, and I can only tell you that my trust in the chancellor is absolute," he said.
The minister added that he and other SPD leaders "also know the responsibility we bear for ensuring the coalition's stability and for getting things done".

Sumber : AFP