Germany faces a structural crisis and must pursue sweeping reforms to regain competitiveness, including a reorganization and modernization of the state and economy in a rapidly changing global and domestic context.

To safeguard freedom and democracy, Germany should implement a comprehensive Agenda 2030 that focuses the state on core tasks—security, infrastructure, and education—and reduce regulatory burdens and misaligned incentives.

Economy Minister Reiche calls for a growth agenda and a realignment of German economic policy, arguing the country is in a prolonged weakness phase and needs bolder policy shifts.

In her speech, she signals cuts to heating subsidies and argues for greater individual responsibility in home heating upgrades, noting current subsidies cover up to 70 percent of costs.

The report also highlights surrounding context from Welt’s coverage, including how the proposals could impact workers.

Subsidies and funding programs should be rigorously reviewed, with an aim to eliminate misaligned incentives, streamline government spending, and tighten public debt.

Reiche supports extending working life and questions sick-pay incentives from day one, arguing reforms are needed to avoid perverse incentives.

She reiterates calls for pension reform and intergenerational fairness, including questions about long-term sickness benefits and whether executives deserve the same job protections as essential workers in healthcare.

Agenda 2030 is presented as a fitness program for the state, sharpening focus on internal and external security, infrastructure, and education to restore governmental action.

Her climate policy favors a more market-oriented approach with a limited set of targeted instruments and simpler, lower-cost measures.

She draws lessons from postwar reconstruction, implying that history offers guidance for today’s reform efforts.

Reforms are portrayed as slower and less far-reaching under the current conservative-led government, signaling room for more ambition.