Merz rejects resignation calls and pledges to pursue welfare reforms

German Chancellor Friedrich Merz said he would not resign despite unrest in his party and disagreements within the governing coalition. In an interview with the Financial Times, he reaffirmed plans to overhaul the welfare system.

Merz gave the interview on October 14, with its contents published on October 15. Asked about pressure to step down, he rejected the suggestion. He described the government's ability to carry out fundamental welfare reform as the central issue.

The Christian Democratic Union, which Merz leads, suffered losses in two eastern state elections in September. The Financial Times reported growing discontent within the party, while his social reform plans have exposed disagreements with coalition partner the Social Democratic Party.

Since taking office in May 2025, Merz has eased constraints on public borrowing to support investment in infrastructure and defence. Despite that effort, the newspaper said the economy remained weak and industry was shedding jobs.

The chancellor cited a Swedish-style pension fund as one element of the planned overhaul. He described the initiative as a potential turning point, while acknowledging the need for difficult negotiations within the coalition.

Merz also pledged to prevent Alternative for Germany from taking power.