As Polls Sink, Germany's Coalition Leaders Summon Unions and Employers for Crisis Talks

With the Union at 21 percent, the SPD at just 12, and the AfD surging to 29 percent, Chancellor Friedrich Merz and Vice-Chancellor Lars Klingbeil are calling workers and bosses to the chancellery on Wednesday – not to decide, but to talk.

The summit, which the coalition describes as a pure exchange format, comes less than two weeks before the parliamentary summer recess begins on July 10. Government spokesman Kornelius stressed that no repetition of the meeting is currently planned.

“This is first and foremost about staying in dialogue,” said CDU General Secretary Carsten Linnemann, adding that any concrete decisions remain reserved for the formal coalition committee. SPD General Secretary Klüssendorf echoed the sentiment: one date cannot solve complex problems.

Opposition leaders were less forgiving. Greens chairman Banaszak criticised the late timing of the talks, while the Left warned of worker protections being dismantled.

A questionnaire that pleases no one

The basis for the summit is a 17-point questionnaire drawn up by the chancellery. Employers complain that energy policy and corporate taxation are missing. Unions see social justice issues under-represented.

The most explosive item: pension reform. Employer representative Rainer Dulger is pushing for a later retirement age and steeper deductions. DGB chairwoman Yasmin Fahimi calls the plan economically misguided and warns it would weaken domestic demand. IG BCE chief Michael Vassiliadis noted that talks with employers on working-time law have been stalled for eighteen months.

Bundesrat President Andreas Bovenschulte advised the government to prioritise. A tax reform to boost growth and jobs is urgent, he said, cautioning that too many simultaneous projects could lead the states to block anything that hurts their budgets.

The DGB has announced a major demonstration against government policy for late June. Merz, speaking at a state party congress on Saturday, said the coalition must prove its ability to act before the summer recess. A decisive coalition committee meeting is scheduled for June 30 and July 1.

The package under discussion is meant to include tax relief, economic stimulus and social security measures – but with polls this grim and partners this divided, the summit may produce more rhetoric than results.

en | boerse | 69504517 |