Saxony Premier Kretschmer Criticizes German Coalition's Reform Package

Saxony's Minister President Michael Kretschmer has voiced strong criticism of the reform package agreed upon by Germany's ruling coalition, deeming it inadequate to overcome the nation's economic weakness. "These are only first steps in the right direction," Kretschmer told Die Welt, emphasizing that "we are still very far from a package of measures that will truly bring us an upswing."

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These are only first steps in the right direction. To generate a real improvement in the economic situation and a change in sentiment, we are still very far from a package of measures that will truly bring us an upswing.

The coalition recently passed legislation concerning savings for statutory health insurance funds and new rules for building heating, alongside adopting recommendations from a pension commission. Further agreements were reached on tax relief for low and middle incomes starting in 2027, and on measures for employment and deregulation. However, Kretschmer argues that these actions fall short of what is needed.

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Something is happening. But now we must all insist that much more must happen.

"Something is happening. But now we must all insist that much more must happen," Kretschmer urged. He believes the coalition has primarily focused on adjusting state benefits to a shrinking economy and declining tax revenues. "But a fundamental reform that could make us truly competitive and once again the export world champion has not yet been initiated," he stated, lamenting that Berlin is failing to make necessary decisions.

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But a fundamental reform that could make us truly competitive and once again the export world champion has not yet been initiated.

Kretschmer accused the government of underestimating the speed of Germany's economic decline. "What we need now are substantial decisions for a different energy policy, a different climate protection policy, a different relationship between citizens and the state. I don't see any of that," he said. He criticized the constant creation of new regulations instead of implementing a decisive breakthrough, advocating for "a corridor of freedom, less regulation in Berlin as well as in Brussels."

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What we need now are substantial decisions for a different energy policy, a different climate protection policy, a different relationship between citizens and the state. All of that I do not see.