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Merz Cabinet Begins Villa Borsig Retreat to Approve 80-Point State Overhaul

Digital upgrades guided by outside experts set the direction for a lengthy implementation phase.

Overview

  • Ministers plan to adopt a Modernisierungsagenda with more than 80 measures targeting a 25% cut to bureaucracy costs, estimated at about €16 billion, and at least an 8% staff reduction in federal ministries and the Bundestag by 2029.
  • Proposed steps include an online portal for reporting red tape, AI-assisted law drafting, digital training for civil servants, a single electronic vehicle registration, and 24‑hour online company formation plus a digital “work‑and‑stay” agency for foreign professionals.
  • High tech and innovation are billed as priorities for competitiveness, though officials do not expect immediate concrete decisions in these areas during the two-day meeting.
  • External speakers include economist Markus Brunnermeier, Lufthansa executive Grazia Vittadini, and Schwarz‑Gruppe CEO Gerd Chrzanowski, whose presence draws scrutiny given the group’s Stackit cloud push; the Chancellery rejects any commercial motive for his invitation.
  • The venue signals a stylistic break from past Meseberg gatherings and a bid for team cohesion, even as unresolved coalition differences over fiscal rules, energy policy and labor issues await later decisions, with a late‑October or early‑November cabinet session planned to pass relief measures.