On 25 June 2026, Chancellor Olaf Merz spoke at the summer festival of the Mittelstand parliamentary circle in Berlin. He thanked guests and colleagues, praised recent coalition decisions, and highlighted new measures to strengthen local governments and the German economy. Merz announced that federal performance laws will be funded so that municipalities receive 80 % of their costs, a move he described as a “connektivitätsprinzip.” He also introduced the activation pension, effective 1 January 2026, which allows older workers to earn up to €24 000 in tax‑free income, and a new pension savings account that will be available from 1 January 2027. Merz underlined cooperation with EU leaders and the importance of sustaining the competitiveness of SMEs and local democracy.
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