(de-news.net) – Chancellor Friedrich Merz (CDU) has called for continued structural change in support of the German government’s reform agenda, stating that fiscal restraint, and steps to boost European competitiveness are necessary due to economic pressures. Additionally, he advocated for increased European participation in international security issues and a more strategically oriented EU budget.
In a government statement to the Bundestag, the Chancellor defended the German administration’s reform agenda, arguing that prompt action is necessary to confront mounting economic pressures. He maintained that Germany’s industrial sector was facing persistent strain, with businesses continuing to lose jobs as a result of high operating costs and extensive administrative requirements. Against this backdrop, Merz called on citizens to demonstrate a willingness to embrace change, presenting reform as a necessary response to the country’s economic challenges and as a means of reversing the current trend.
Although the statement was formally intended to address next week’s European Council summit in Brussels, Merz devoted considerable attention to fiscal and economic policy. He rejected the prospect of additional borrowing, arguing that a number of countries were already allocating more resources to interest payments than to defense expenditures. In this context, he also criticized the European Commission’s draft proposal for the European Union’s multiannual financial framework for the 2028–2034 period, contending that substantial revisions would be required. Referring to the fiscal consolidation measures undertaken in many European countries, Merz argued that citizens were entitled to expect comparable budgetary discipline from EU institutions.
Merz defends pro-growth agenda while opposition warns of social costs
The Chancellor further stated that Europe must preserve its role as a force for stability, prosperity, and democracy within an evolving global order. To strengthen the continent’s position, he advocated expanding the European Union’s trade policy instruments in order to facilitate additional free-trade agreements, including with countries such as Malaysia. He also argued that Europe’s competitiveness could be enhanced through a reduction in regulatory burdens. Turning to technological developments, Merz described advances in artificial intelligence as a major opportunity for Germany, suggesting that the country’s industrial and engineering sectors were well placed to benefit from the transformation associated with the technology and could emerge as beneficiaries of its wider global adoption.
Merz also called for an EU budget that places greater emphasis on defense and economic competitiveness while avoiding new debt. According to his position, increased spending in these priority areas should be financed through reductions elsewhere in the budget rather than through additional borrowing. On foreign policy, he reiterated his demand that European countries be involved in any future negotiations aimed at ending the war in Ukraine. In addition, he stated that Germany would be prepared to contribute to efforts to secure the Strait of Hormuz following a peace settlement in the Iran War.
The government’s reform strategy drew criticism from opposition parties across the political spectrum. Alice Weidel, co-chair of the AfD parliamentary group, accused the coalition of economic mismanagement and argued that growth was being constrained by a combination of high taxes, elevated energy costs, excessive bureaucracy, and state intervention. Britta Haßelmann, parliamentary leader of the Greens, focused her criticism on the government’s proposed reforms to the health care and long-term care systems, contending that the public was becoming increasingly aware of widening social disparities. Sören Pellmann, leader of the Left Party’s parliamentary group, likewise warned that the government’s policies posed a threat to the welfare state, arguing that higher defense spending was already contributing to reductions in social spending.
Audio: TTSFree
