German chancellor says country’s economic growth has stagnated for years

German Chancellor Friedrich Merz has called for major structural reforms in Germany, saying the country’s economic development has stagnated for years and that policies pursued over the past two decades no longer reflect current realities.

Speaking at a federal congress of the German Trade Union Confederation in Berlin, he said Germany is facing rapidly evolving crises that directly affect the country domestically, Caliber.Az reports, citing Russian media.

According to him, Germany is facing new crises almost weekly, and their nature sometimes changes several times a day.

“None of this can be left ‘outside the door’ or delegated to some sphere called ‘foreign policy’ handled by a few experts. It affects us directly here in our country; at times it harms us and shows that we, too, must change,” Merz said.

Among the key challenges, the chancellor cited rising energy prices, increasing production costs, higher living expenses for families, growing bureaucratic burdens for businesses, and concerns over jobs.

“But the state cannot protect citizens and businesses from every shock we are experiencing,” he added.

Merz stressed that Germany’s problems are not solely the result of external pressures.

“The challenges are so great also because, for too long, we created problems for ourselves that we are now forced to solve. We simply missed the opportunity to modernise our country,” he said, adding that Germany “must pull itself together.”

“Germany must address the structural problems that we postponed for years and that have only worsened as a result. We all know this: our economic development has stagnated for years — for at least the past seven years — while other countries around us have grown, in some cases quite significantly,” the chancellor said.

He noted that forecasts for Germany’s future economic growth remain below 0.5%, which he described as insufficient for the country’s prosperity and economy.

Merz called for deep reforms and measures to encourage entrepreneurship.

“We cannot simply continue as we have over the past 20 years. We must be ready for change — change aimed at preserving what is dear to all of us in this country,” he concluded.

By Bakhtiyar Abbasov