(de-news.net) – Matthias Miersch, the leader of the SPD parliamentary party, responded in a measured and balanced manner to a letter from Chancellor Friedrich Merz that was strongly shaped by economic considerations. Miersch observed that the CDU leader’s message set out a series of economic objectives looking ahead to 2026, but he cautioned that these priorities should not overshadow social policy concerns. He stressed that economic stabilization and social cohesion needed to be addressed in parallel. In this context, Miersch announced that the SPD caucus in the Bundestag would articulate clear social policy priorities, beginning with its retreat scheduled for later this week. At the same time, he underscored that the SPD regarded both national and international cooperation as indispensable foundations for effective governance and long-term stability.

In his four-page letter to lawmakers from the CDU/CSU and the SPD, Merz primarily highlighted achievements from the initial months of the current government. While these measures had been jointly agreed upon with the SPD, responsibility for their implementation lay predominantly with cabinet members from the CDU and CSU. Merz nevertheless argued that these steps had not yet translated into a sufficient improvement in Germany’s economic competitiveness. He warned that, despite early progress, the overall economic situation remained serious and continued to warrant urgent attention.

Merz further emphasized that major manufacturing sectors, along with large segments of the Mittelstand and the skilled crafts, were confronting substantial difficulties, including ongoing job losses. He pointed in particular to excessively high labor costs as a central burden on businesses. According to his assessment, Germany’s competitive position had still not improved adequately, even in light of federal investment initiatives. Persistently weak productivity, driven by high labor, energy, and tax costs, continued to weigh on economic performance. Merz maintained that most of these challenges could be addressed through domestic policy action and argued that successful reforms would not only enhance economic resilience but also strengthen social cohesion and restore public trust in political institutions. In addition to domestic economic issues, the chancellor also addressed the situation in Ukraine.