The Federal Government has now been in office for around two months. “We have tackled a lot, we have achieved a lot, but there is still a lot to do”, said Federal Chancellor Friedrich Merz in the general debate in the German Bundestag. The mood in the country is improving again. 

But there are also worries, fears and uncertainties. “We want to convey courage and confidence to everyone in Germany”, said Merz. It is a great fortune to live in freedom and peace. It should stay that way. 

What the Federal Chancellor said about … 

… foreign policy and security policy

According to the Federal Chancellor, the Federal Government is being recognised and taken seriously again internationally. He will develop a good relationship with European neighbours, he said, because: “We need partners.” At the same time, Germany is assuming the leadership role that Europe expects of it. The decision to provide more money for security is not only important for the country’s defence capabilities, but also for the existence of NATO, he said. 

Federal Chancellor Merz continued to assure Ukraine of Germany’s support. The Federal Government will simplify and speed up the procurement process so that the Bundeswehr can quickly obtain everything it needs for its defence. According to the Federal Chancellor, all of this is being done in order “to secure peace, freedom and prosperity in our country.”

… economic policy

With this budget, the Federal Government has initiated a shift in economic policy, said Federal Chancellor Merz. The investment offensive is providing a strong impetus for growth. The economy will benefit from relief to the tune of billions, and competitiveness will be increased.

Current surveys show that the mood in German companies is constantly improving, emphasised Federal Chancellor Merz. The Federal Government is focusing on structural reforms, reducing energy costs and taxes and removing bureaucratic hurdles. In addition, private households and companies will receive over ten billion euros in relief from the beginning of 2026. 

The aim in the customs dispute with the USA is to reach a trade agreement with the lowest possible tariffs – in cooperation with the European Union, and in close collaboration with the European partners. “This is in the interests of our export-oriented economy”, said Merz.

Find questions and answers on the 2025 Federal Government budget here (only german).

… migration policy

The Federal Government has set the initial course for a sustainable reduction in irregular migration. The number of asylum applications fell by 43 percent in the first half of 2025 compared to the same period last year. “We will solve this problem”, said Merz. Thousands of illegal entries have been prevented. Border controls are still necessary for the time being, but the goal is a European solution. 

The Federal Government has suspended family reunifications for persons entitled to subsidiary protection, abolished accelerated naturalisation and initiated the expansion of safe countries of origin. These moves were “necessary to restore domestic peace in the country”, said the Federal Chancellor.

… social policy

Social cohesion is also an important issue for the Federal Government, said Merz. Sufficient affordable living space is particularly important in this regard. The Federal Cabinet has therefore decided to amend the building code in order to allow for residential construction at maximum speed. The rent control freeze has therefore also been extended. 

The current citizen’s benefit should become a basic income support “for those who really need the welfare state”, said the Federal Chancellor. Federal Cabinet decisions will be made in the autumn.

Information on the general debate

What is a general debate?

The general debate is a central debate in the German Bundestag on the policies of the Federal Government. It takes place annually during the budget week, when the Federal Government presents its draft Federal Budget.

Who speaks there?

The first speaker is the leader of the opposition. The Federal Chancellor speaks thereafter. As a rule, all chairs of the parliamentary groups have their say in the debate. 

Why is it important?

The Federal Chancellor’s speech is traditionally regarded as the highlight of the budget week and sets out the Federal Government’s policy guidelines. The general debate is therefore an important forum for parliamentary debate on government policy.