Overview
- Chancellery Minister Thorsten Frei signaled openness to a fundamental revision of the coalition agreement to address the weak economy, arguing the government should not hold to a pact “stoically.”
- Frei cited potential reductions in health-care services and stronger primary-care gatekeeping as options to keep the system affordable, according to his RND interview.
- Senior Social Democrats swiftly rejected wholesale renegotiation, with figures such as parliamentary leader Matthias Miersch calling a new deal unnecessary and urging implementation of the current contract.
- Economy Minister Katherina Reiche had already urged measures that go beyond the pact, including longer working lives, extended working hours, and looser dismissal protection.
- Ifo president Clemens Fuest warned of possible “dauerstagnation” and called for something like a war‑economy tempo, while employer chief Rainer Dulger demanded a “big” reform push in 2026 and industry leaders decried the downturn.