Merz states getting Germany’s economy back on track is hard work
(MENAFN)
German Chancellor Friedrich Merz has admitted that the country is not just dealing with a period of short-term economic slowdown but facing a broader “structural crisis.” He acknowledged that efforts to revive growth have proven more difficult than he initially expected.
German Chancellor Friedrich Merz has admitted that the country is not just dealing with a period of short-term economic slowdown but facing a broader “structural crisis.” He acknowledged that efforts to revive growth have proven more difficult than he initially expected.
Speaking to members of the Christian Democratic Union in Osnabrueck on Saturday, Merz reflected on the scale of the challenge, saying, “I say this also self-critically – this task is bigger than one or the other may have imagined a year ago.”
The chancellor noted that “large parts of the country’s economy are no longer truly competitive,” pointing to Volkswagen’s steep 36% drop in second-quarter after-tax profits as “one of many messages” about the troubled state of German industry.
“By this week at the latest, no one should be under any illusions about how deep and far-reaching the challenges that face us are,” Merz warned.
“The quality is still good and company leaders recognize these challenges. But the underlying conditions in Germany simply haven’t been good enough for the last decade,” he added.
The downturn in Germany’s key auto sector has further fueled concerns. BMW, another major carmaker, reported a 29% profit decline in the first half of the year compared with 2024.
With Germany having already slipped into recession last year, the International Monetary Fund now forecasts zero growth for 2025, raising questions about the long-term strength of Europe’s largest economy.
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