German Chancellor: Germany’s economic situation is worrisome
German Chancellor Friedrich Merz warned of a continued decline in the performance of the German economy, stressing that difficult economic conditions are casting a direct shadow on the country’s labor market.
Merz explained during a press conference that the economic situation in Germany remains worrisome, noting that the negative repercussions affect a wide segment of the industrial sectors.
He added that this decline isn’t limited to large industries, but also includes small and medium-sized enterprises, as well as small-scale manufacturing industries.
Speaking about the structural challenges facing the German economy, Merz pointed to the dramatic rise in taxes, rising energy costs, as well as bureaucratic complexities that hinder business growth and investment.
The German chancellor said the labor market is stagnant, noting that long-term unemployment continues to be a growing burden on the national economy.
German Economy Minister Katherina Reiche has warned in previous statements that maintaining the current welfare state model may require citizens to work longer periods or delay retirement age, in light of increasing financial pressures.
Germany is in recession for the third year in a row, with its economy facing a significant slowdown due, among other factors, to a sharp rise in energy prices following the interruption of Russian gas supplies.
In a previous letter to his ruling coalition partners, Merz described the economic situation as extremely sensitive, warning that this year will be very difficult for the country.
