Germany news: Reform row raises fears for Merz's coalition
Germany's conservatives are dialing up the pressure on their center-left partners ahead of crunch talks next week. Meanwhile, Volkswagen's latest cost-cutting push has triggered a furious response. DW has the latest.
On Friday, October 2, 2026, tensions within Chancellor Friedrich Merz's coalition government in Germany have escalated as the conservative Christian Democratic Union (CDU) pressures its center-left Social Democratic Party (SPD) partners to implement controversial economic and social reforms. The CDU, led by Friedrich Merz, is ready to withhold support for Finance Minister Lars Klingbeil's income tax reform until SPD co-leader Bärbel Bas submits legislation on pension and labor market reforms.
Meanwhile, Volkswagen's Union, IG Metall, has accused the carmaker's management of provoking a conflict that the company cannot afford, leading to the threat of job cuts.
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