German government meets in Neuhardenberg for two days to prepare reform drive

Herz — Climate Desk · 25 August 2026 at 05:09 · 30s summary · 3 min read

What we know

Germany’s federal government is meeting for two days at Neuhardenberg Palace in Brandenburg after the summer recess. According to Handelsblatt, this is the first cabinet retreat held at the site in 22 years.

The talks will focus primarily on strengthening the competitiveness of the German economy. The government will also examine the consequences of this summer’s heatwave.

The retreat opens a period that will include three state elections and a possible autumn reform drive.

The economy leads the agenda

Reviving the economy and securing its long-term strength are expected to shape the entire retreat, with representatives from the business community taking part in the discussions.

The agenda covers artificial intelligence, support for technology and research, cutting bureaucracy, skilled trades, start-ups and smarter housing construction.

Chancellor Friedrich Merz wants the CDU-SPD government to implement quickly the reform package adopted before the summer recess. He has presented it as a set of decisions from which the government will not depart.

Disagreement over pensions

Sven Schulze, Michael Kretschmer and Mario Voigt, the CDU state premiers of Saxony-Anhalt, Saxony and Thuringia respectively, oppose a pension proposal.

They reject plans to abolish the option of retiring without deductions after 45 years of contributions, commonly known in Germany as the “Rente mit 63”.

Merz and Labour Minister Bärbel Bas, however, regard the reform as an indivisible package that cannot be changed. A decision is due in the autumn.

Heatwave renews climate debate

SPD ministers want to strengthen climate protection in response to the heatwave by amending Germany’s Basic Law, the country’s constitution since May 8, 1949.

The CDU-CSU alliance led by Merz is sceptical or opposed to the amendment and wants to use the existing policy options first.

Government spokesperson Steffen Kornelius said no final decision on constitutional climate protection would be taken on Wednesday.

The meeting must first establish a comprehensive assessment of the effects of the heat and drought. Possible conclusions can then be considered.

Cabinet reshuffled in July

Merz reshuffled his cabinet in July after Jens Spahn resigned as parliamentary group leader of the CDU-CSU alliance. Three posts changed hands.

Nina Warken moved from the Health Ministry to become head of the Chancellery, while Carsten Linnemann took over the Health Ministry.

Steffen Bilger replaced Patrick Schnieder as transport minister. The way Schnieder was removed caused discontent with Merz inside the CDU.

During the summer recess, Bilger made frequent public appearances to raise his profile with a broader audience.