German chancellor Friedrich Merz praised on Wednesday, April 29th a planned overhaul of the country’s health insurance system, presenting it as evidence that his increasingly unpopular coalition government can still deliver major reforms—despite increased political strain.
Speaking in Berlin after the cabinet approved the package, Merz described the health measure as
one of the most significant social welfare reforms of recent decades.
The agreement followed months of internal debate within the governing coalition.
The chancellor said the decision showed that the government remains functional despite tensions, telling reporters
This coalition is willing and able to make decisions…. We can compromise and we negotiate, even if things get a little shaky at times. That is simply part of the process.
Merz came to power amid public frustration with the previous three-party coalition led by Olaf Scholz, but his own government has since faced declining approval ratings and growing criticism over its performance. A recent poll indicated that 83% of Germans are dissatisfied with his leadership.
Merz said the reforms were necessary to prevent a projected €15 billion deficit by 2027, warning that the system would become unsustainable without action:
We had to stop this trend to keep the system affordable overall.
Alongside the health reform, the cabinet also approved a framework for the 2027 federal budget, with pension system changes expected to follow.
Despite the progress, Merz acknowledged uncertainty about the government’s future stability, saying: “Nobody can guarantee anything.”
