According to the Federal Chancellor, the Federal Government has tackled many reforms that were long overdue. “In my view, this means we are also on the right track,” said Merz. But still a long way from the goal. After all, the aim is for Germany to return to being a competitive economy and to be among the strongest economies in Europe.   

“The coalition has found its feet.” The Federal Chancellor praised the good cooperation within the coalition. He concluded the first half of 2026 with the confidence “that we will continue to pursue sound policies for Germany in the second half of the year as well, whilst being fully aware that we still face major challenges.”   

Here is what Federal Chancellor Merz said in his statement…

…on infrastructure

The Infrastructure for the Future Act, which has now been passed, will make the entire process of planning and implementing infrastructure projects considerably easier. The process will be speeded up, as key projects can be given priority in future, “because we have classified this expansion as being in the overriding public interest,” said Federal Chancellor Merz. “That was an important piece of legislation.” 

…on statutory health insurance

Last week, the Bundestag and the Bundesrat passed the more comprehensive reform of statutory health insurance, a project “which we have been preparing for many months.” The draft bill was drawn up on the basis of the proposals put forward by the Health Finance Committee (FKG). The aim of the reform is to stabilise contribution rates. This is to be followed by the reform of the pension system.   

…on cutting red tape

This was the second time the so-called caretaker cabinet had met during this parliamentary term. “A cabinet meeting at which we dealt almost exclusively with deregulation and the abolition of statutory regulations,” said Merz. The aim is to cut red tape in Germany and thereby ease the burden on businesses and citizens. “This is a challenge we will face in the long term.” The Federal Chancellor announced that another caretaker cabinet would be formed at the end of the year.   

…on the European Union

Chancellor Merz emphasised that, from the very beginning, he had attached great importance to Germany once again playing a stronger role in the European Union. Merz highlighted Germany’s special responsibility to “contribute to the success of European policy.” He regarded the agreement on the medium-term financial framework, due to be reached in the second half of 2026, as a challenge. In his view, it was a success that the EU had reached a consensus on the completion of the European single market and the restoration of the competitiveness of European industry. He wants to promote better cooperation within the EU.     

… on security

The Federal Chancellor commented on the recent NATO summit in Ankara. He highlighted successes in military-technological cooperation, specifically the agreement between Canada, Norway and Germany on the joint construction of submarines. “This is not just a military-strategic decision; it is also an important economic policy decision for our country. We will have orders worth a high double-digit billion figure for shipyards and suppliers in Germany.” 

The Chancellor also referred to the meeting of the so-called Coalition of the Willing in Paris, an alliance of several states formed to support Ukraine against Russia’s war of aggression. There he said, “We all expressed our clear determination” to continue helping Ukraine.  

Furthermore, with regard to the National Security Council, he said that “an institution has been created which, within the Chancellor’s Office, defines security policy in the broadest sense: internal security, external security, security of supply” – right through to protecting the population, for example from heatwaves.