Merz faces increased political pressure domestically to tackle Germany’s economic challenges. Following two years of economic downturn, economists predict minimal growth this year, influenced by U.S. President Donald Trump’s tariff policies, which have significantly impacted Berlin’s export-dependent economy. German business leaders are pressing the chancellor to implement bold reforms to boost growth.
Merz’s centrist coalition has pledged to implement labor market and welfare reforms. Recently, Merz has increasingly criticized Brussels, urging the EU to reduce business regulations, strengthen the internal market, and pursue more global trade agreements.
“We don’t have a problem with awareness in Europe; we have a problem with implementation,” Merz stated on Thursday. “I plan to address this implementation issue with our European partners again, primarily concerning our European economy’s competitiveness.”
Merz referred to two studies by former Italian prime ministers Mario Draghi and Enrico Letta, which outlined proposals to expand the EU’s internal market and improve competitiveness. “These reports should not be ignored by the European Commission,” Merz emphasized. “They should be prioritized on the European Union’s agenda.”
Merz urged the Commission to negotiate new EU-only trade agreements globally and called for the approval of a trade agreement with the South American Mercosur bloc by year-end.
Leave a Reply