Merz warns of stagnation and announces social reforms

In an exclusive interview with :newstime, Federal Chancellor Friedrich Merz took a critical look at the first three months of his term in office and spoke candidly about Germany's economic situation.

Merz spoke of ongoing stagnation in the German economy and warned of declining labor productivity, which has barely increased in over a decade. Germany is increasingly losing its cost and price competitiveness on the global market—with consequences for long-term growth.

Merz announced far-reaching reforms to restructure public finances, particularly in the area of social benefits, where savings of around ten percent—approximately five billion euros—are planned.

According to him, the decline in irregular migration is helping to relieve the burden on social welfare systems.

The chancellor also addressed foreign and security policy: In view of growing hybrid threats – especially from Russia – Merz advocates a more strategic defense policy.

He made harsh comments about Vladimir Putin, saying, “He is the worst war criminal of our time.” At the same time, Merz categorically ruled out the deployment of German ground troops in Ukraine before a ceasefire, but left room for future initiatives in the event of diplomatic progress.

(sie)