Germany’s Merz Calls for Deep Structural Reforms Amid Global Uncertainty

(MENAFN) German Chancellor Friedrich Merz said Tuesday that Germany needs to undergo significant structural changes in order to secure long-term prosperity and maintain peace amid rising global instability and mounting economic pressures.

Addressing a gathering of German trade union representatives, Merz said the country is facing global economic shifts that are worsening existing domestic weaknesses.

“We are witnessing today geo-economic upheavals that are colliding with long-standing structural problems,” Merz told the congress. “These crises demonstrate that we, too, must undergo change,” he said.

The conservative leader argued that Germany must implement broad reforms to strengthen the international competitiveness of its industries, stressing that sustainable employment depends on stronger economic performance.

According to Merz, improving conditions for businesses will require reducing bureaucracy, investing more heavily in infrastructure and speeding up digital transformation efforts.

“We have simply failed to modernize our country. This is now coming back to haunt us in the shadow of major transformative forces,” Merz said. “If we want to preserve our prosperity in the long term, if we want to secure freedom and peace in our country for the long term, then we, too, must change.”

He also urged labor unions to back the government’s proposed restructuring of the social welfare system, including reforms affecting pensions and healthcare.

Merz emphasized the need for cooperation and compromise, saying the country must work collectively to identify solutions and navigate current challenges together.

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