Merz defends coalition reforms and tax relief, says government has 'found its footing' ahead of key eastern state elections

Coalition touts reform progress

Chancellor Friedrich Merz declared that his coalition government has "found its footing" during a summer press conference in Berlin on Wednesday. The conservative CDU leader pointed to a package of reforms pushed through the Bundestag and Bundesrat in the first half of 2026, including a comprehensive overhaul of statutory health insurance and a legislative package covering tax relief, sick leave, and pensions. "All the projects we had planned, we got through the Bundestag and the Bundesrat," Merz said, citing the Future Act and infrastructure planning measures as further achievements.

The coalition has found its footing.

Merz acknowledged that the work was incomplete. "I am not satisfied with what we have achieved as long as we are not significantly better than we currently stand," he told journalists. He confirmed that a reform of nursing care insurance would be set in motion later in the year and that a second deregulation package would arrive by the end of 2026.

Cuts to child maintenance advances defended

The chancellor defended planned reductions in the state child maintenance advance, arguing that the financial burden on municipalities had become unsustainable. "We are seeing developments here that we can no longer financially sustain," Merz said. The government is considering scrapping the advance for 16- and 17-year-olds, reverting toward the pre-2017 rule that limited payments to children up to age 12. Merz stressed that the primary goal was to compel defaulting parents, usually fathers, to pay maintenance themselves, and that no final decision had been taken. "We will talk about it further in the coalition," he said.

We will talk about it further in the coalition.

AfD threat looms over September elections

The press conference took place ahead of regional elections in Mecklenburg-Western Pomerania, Saxony-Anhalt, and Berlin, where the far-right Alternative for Germany is expected to make strong gains. A poll from broadcasters RTL/ntv published the same day found that only 14% of Germans are satisfied with Merz's work. The chancellor said he remained "optimistic" that the AfD would not secure a majority in any of the three states. He reiterated his party's long-standing refusal to cooperate with either the AfD or the socialist Left Party, citing binding party conference resolutions.

I am and remain confident that an AfD majority of seats can be prevented.

Foreign policy and deportation flight

On foreign affairs, Merz addressed the war in Gaza, stating that Germany could not support sanctions against Israel because, unlike Russia, Israel was not waging a war of aggression. He conceded that beyond diplomatic talks, "we cannot do much at the moment." The chancellor also confirmed that a deportation flight to Afghanistan had departed that day, describing contacts with the Taliban as merely "technical talks" and ruling out any diplomatic recognition of the regime.

A contrast with the Merkel era

The briefing was Merz's second summer press conference as chancellor. The chair of the Federal Press Conference noted that Merz had appeared 17 times since 1999, compared with 46 appearances by former chancellor Angela Merkel, drawing laughter in the room. Last year's event occurred during a coalition crisis after the sudden collapse of a judicial appointment to the Federal Constitutional Court. This year, Merz struck a more confident tone, telling critics: "We are proving step by step that we are a genuine reform coalition for Germany."