The chancellor focused on the Strait of Hormuz and the war in Ukraine, as well as touting domestic reforms regarding pensions, taxes, and the healthcare system. But most of the journalists' questions revolved around the "Alternative for Germany" (AfD) — a party with some far-right elements — which is leading in the polls ahead of two state elections in eastern German states this September.

How does Merz intend to prevent far-right extremists from coming to power in Germany for the first time since World War II? At first he evades the question; only when pressed does the chancellor then, surprisingly, address the voters in Saxony-Anhalt and Mecklenburg-Western Pomerania directly: "Take a close look; don’t let yourselves be informed solely by social media, no matter the topic. Instead, look at what the federal government is trying to get off the ground."

And then he defended his administration: "The federal government has found its rhythm, despite some criticism. We’ve delivered."

But he also admits that the massive investment package for the Bundeswehr and infrastructure in 2027 — amounting to one trillion euros— is a "significant burden on my personal credibility as well." After all, Merz had promised during the election campaign to avoid taking on new debt.

Merz justifies Germany's record high defense spending by citing Ukraine

In addition to domestic reforms, Merz also addressed issues related to defense and foreign policy during the summer press conference. 

Merz said the amount of debt the German government is taking on to boost defense spending is justified by the situation in Ukraine. Germany is expected to spent a record €124.7 million (around $142 billion) on defense this year, a jump of 25.5% from last year.

"We cannot continue to finance this as we have in the past," Merz said, while adding that Germany is taking steps to be capable of defending itself again. Germany's defense spending has lagged behind other NATO countries. 

Europe pushes back after Trump threat over US troops

Merz said NATO must become more "European" so the bloc can stay a transatlantic alliance. US President Donald Trump has urged European countries in NATO to spend more on defense.   

"We are not in a time of war, but we are also no longer at peace either," the German chancellor said. He contended that Germany is a major target for Russia's "hybrid war,"which includes acts of sabotage of German civilian infrastructure.       

Merz touts reforms, says 'coalition has found its footing'

German Chancellor Friedrich Merz, during a summer press conference, touted reforms achieved by his government and said more are to come.   

Merz belongs to the conservative Christian Democratic Union, which is in a federal governing coalition with the CDU's Bavarian sister party the Christian Social Union and the center-left Social Democrats. 

Merz's coalition recently pushed through reforms on healthcare and a legislative package in regards to tax relief, sick leave and pensions. "The coalition has found its footing," the German chancellor said. 

Merz said reform of nursing care insurance would be set into motion later this year and he also expects a legislative proposal in regards to the reform of the Working Hours Act. The Working Hours Act (Arbeitszeitsgesetz) is a law which regulates the maximum duration of permissible working hours, with the law also setting rules for breaks and rest periods. 

The government will also continue its efforts to eliminate burdensome bureaucracy, Merz emphasized. 

Germany's coalition government, which came into office in May 2025, has been often struggled with infighting on contentious issues such as pensions.  

Public dissatisfied with Merz as regional elections loom 

The summer press conference comes as German lawmakers head for recess. 

What are the German government's pension, labor reforms?

Merz took questions as a poll from broadcasters RTL/ntv finds that only 14% of Germans are satisfied with his work.

The media briefing also comes ahead of regional elections in the three states: Mecklenburg-Pomerania, Saxony-Anhalt and Berlin. The far-right AfD is expected to make historic gains in the Mecklenburg-Western Pomerania and Saxony-Anhalt and may soon find itself controlling a German state government for the first time. 

Merz said he was "optimistic" that the AfD would not garner a majority in the upcoming regional elections. Merz also emphasized that his CDU would not work with the AfD or the socialist Left Party.  

Fugitive neo-Nazi returned to Germany by Czech authorities

Marla-Svenja Liebich has been returned to Germany almost a year after the infamous neo-Nazi went on the run to avoid a jail term on incitement to hatred charges.