Name: Reform or decline? The harsh reality facing Germany’s government | DW News
Uploaded: 2026-03-30T16:57:50.000Z
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Here's the situation: wars in Ukraine and Iran, the rise of the far right, and

a government coalition that, so far, has been unable to agree on reforms.

What's it going to be for Germany: reform or decline?

Berlin needs to enact social and economic reforms.

But does Germany have the strength to overcome the many obstacles?

Time for a quick reminder of what most experts agree is needed: pension system reform, health care system reform, and

This man has taken center stage in the past days.

He might be the key to unlocking the door to reforms.

Lars Klingbeil, co-leader of the Social Democrats, together with his colleague Babel Bass, who is more left-leaning than he is.

Their party is in trouble after key state elections.

In the most recent state election in Rheinland-Palatinate, the SPD lost almost 10 percent of the vote and also its mandate to govern the state.

And earlier, in the state of Baden-Württemberg, the SPD barely made it into parliament.

These losses appear to have convinced Klingbeil that he needs to move to the center.

A recent speech of his attracted a lot of attention in Germany because of statements like this: "And when I talk about fundamental changes, that also means we as a society will have to work more overall.

I want us to have a debate about the labor market, but

I want us to have it based on facts, not on populism." He wants Germans to work more.

Only a couple of years back he was contemplating the four-day workweek for certain professions.

Now he appears to be aligning with the German Chancellor, Friedrich Merz.

And that could unlock possibilities for compromise.

But will it be enough to push through urgent reforms?

I checked in with Professor Thomas Pogundke, a political scientist and expert on political parties.

I wanted to know his take on the state of the coalition, despite Klingbeil's recent rapprochement.

"When you look at the present coalition, they are actually not very close together politically.

If you would measure the distance between the more economically liberal wing in the Christian Democratic Party and the left of the Social Democratic Party, this is going to be a difficult attempt.

So there is going to be an intense conflict over the question: either raising more money or saving more money." An internal SPD fight seems almost inevitable, and

a lot rides on the question whether the party can resolve it.

Let's say the SPD manages to overcome its differences.

There are still many other obstacles, one of them being time, because there's not much of it.

Germans are increasingly growing impatient.

Take a look at this poll: 71 percent of Germans want reforms, and fast.

The coalition appears to agree their goal is to get everything on track until the next state elections in Saxony-Anhalt.

Here you can see the state capital, Magdeburg.

Voters will go to the polls here on September 6.

Very little time to implement the number of reforms that appear to be needed.

The far right AfD has reason to celebrate, making major gains in both state elections this year so far.

All other parties rule out forming a government with them.

But in Saxony-Anhalt, according to the polls, an absolute majority is within reach.

If they were to achieve this, the AfD would, for the first time, govern in a German federal state.

Confidence is high in the far right party.

Of all times, it is precisely now that no reforms can be expected anymore because the SPD finds itself weakened and in decline.

It is no longer the party of workers and employees.

Can the governing coalition change that perception fast enough?

Now, the assumption is that enacting reforms before the next elections will weaken the AfD.

But it's not that easy, because despite the willingness of a majority of Germans to enact reforms, there's also a majority that doesn't want to sacrifice anything for those reforms.

Okay, 33 percent said yes, but 55 percent of those asked said no to significant sacrifices.

That spells trouble for the reform plans.

In this context, is it realistic to believe that the governing coalition will be able to enact reforms in the short time until the next state, or as they're called in German, Bundesland elections?

the government should have really started earlier before that, because last year was quiet in terms of land elections.

Germany's always troubled, if you like, by consecutive land elections, which make it difficult to concentrate on policymaking.

And now we have about 160 days until the next land elections.

As if all that wasn't enough, there's also, well, the world.

Two wars, a full-blown energy crisis, and very difficult transatlantic ties.

All of that is eating away at Germany's projected slim growth.

So the government needs to handle all of this while trying to enact reforms at the same time.

And as you can imagine, that costs a lot of time.

Klingbeil, who is also finance minister, has started spreading the unpopular message that there's a big hole in the federal budget and that the state of the world is making everything even harder.

His coalition partner, the German Chancellor, who was elected on the promise of reigniting the German economy, has been singing the same tune.

His message to the Germans now: "I hear you." There's the war in the Middle East.

So much uncertainty coming from the outside all at once has been rare.

And so many challenges on the inside all at once have also been rare.

And given this background, it is more than understandable that the population is unsettled.

We have a task to fulfill here in Berlin and in the federal states, to give the population back the certainty that the coalition knows what they are talking about and doing, and

they make these decisions in the greatest possible agreement.

And that is something I have been working toward for almost 10 months within the coalition.

Of course, there's another reason why Germans' uncertainty has been growing.

Expectations in the government have obviously not been met yet.

Now, you might be thinking Germany is still a really wealthy country.

But this wealth is at stake at the moment, and

the next months may very well decide the fate of the country for years to come.

But Professor Pogundke thinks there is still ground for optimism.

But generally, German elites are committed to a consensus and a compromise.

So I think Germany has the strength to do that, but it's difficult times ahead.

Difficult times because of painful reforms.

But in the end, the alternative: further decline, in all likelihood, would be much worse.