Merz: Working time reform for prosperity - is the 40-hour week coming?

Merz: Working time reform for prosperity - is the 40-hour week coming?

The new Chancellor Friedrich Merz (CDU) warned of an important issue in his first government statement: Germany's competitiveness is at stake. On May 6th, Merz was elected chancellor in the second round of voting and sees a central need for action in increasing the efficiency of the German economy. Merz explained: “With a four-day week and work-life balance, we will not be able to maintain the prosperity of this country.” In order to meet these challenges, the government is relying on more flexibility in working hours.

The reform sought by Merz stipulates that in the future there should be a weekly instead of a daily maximum working time. This regulation is also recorded in the coalition agreement between the Union and the SPD. The CDU workers' wing has spoken out in favor of weakening the current work rules, but under certain conditions. It remains to be seen whether these conditions can be enforced within the CDU.

Challenges for the new government

Merz has taken a clear position: The 40-hour week remains a central element of working time policy that should be implemented promptly. This measure is intended to help people achieve a better balance between family and work. At the same time, ministers must present their plans, with Merz aiming for a leadership role for Germany in Europe and seeing the recent talks with US President Donald Trump as a first step in this direction.

The government faces major challenges, including foreign policy, migration, and economic and financial issues. Interior Minister Alexander Dobrindt (CSU) has already implemented a campaign promise that will reject foreigners without a visa at the land border. However, this measure is not supported by everyone, as certain groups, such as heavily pregnant women, are exempt from this rejection. In addition, comprehensive reforms in migration policy are pending, although these are likely to take a few weeks and require changes to the law.

Economic policy in focus

Finance Minister Lars Klingbeil has made the development of the 2025 budget a top priority. A planned debt pot of 500 billion euros is to be used for infrastructure investments. However, there are concerns that this loan package could violate European debt rules. The electricity tax cut and new depreciation rules for companies are also intended to ease the economic situation.

The new Economics Minister Katherina Reiche is also focusing on a more pragmatic economic policy in order to focus on security of supply and affordability. Merz sees his newly formed cabinet's lack of government experience as an opportunity for change. Defense Minister Boris Pistorius (SPD) remains the only cabinet member with previous government experience, which makes the coming months all the more challenging. The government's next steps are crucial to whether the desired reforms in working time and economic policy can be successfully implemented.