Chancellor Friedrich Merz said today at the opening of the two-day extended cabinet meeting that Germany has the potential to overcome its economic difficulties, DPA reported. He called on the country to build on its industrial advantages, BTA reports.
“Our country has enormous potential and there is absolutely no reason to underestimate ourselves“, said Merz at Neuhardenberg Castle in the state of Brandenburg, east of the German capital.
Germany still has an excellent industrial base, a strong sector of small and medium-sized enterprises, a globally recognized skilled sector and world-class scientific research, said Merz. “And that is exactly what we are building on. We want to use these strengths to ensure growth and employment in the future,” the chancellor added.
The meeting is dedicated to Germany’s competitiveness and increasing it through innovation, with the government seeking dialogue on the subject with business representatives.
“We want to get out of the period of weak growth in our economy,” Merz said, adding: “We want to enable our economy to recover and create jobs again.”
According to him, Germany largely has the means to achieve this on its own. “Germany can compete successfully on a global scale,” Merz said. However, the state must create the necessary and appropriate conditions for this, he added.
The coalition government launched major reforms before the summer parliamentary recess, but they have not yet been implemented. Among them are measures to reduce bureaucracy for businesses, strengthen the technologies of the future, and increase competitiveness. A package of measures to halt increases in mandatory health insurance contributions has already been agreed. Business organisations in Germany have long complained about excessive bureaucracy and high energy costs by international standards. Friedrich Merz also defended his commitment to combating global warming, despite criticism of his inaction over heat waves that have hit people and industry, AFP reported. “We must continue to limit climate change and at the same time better adapt the country to its consequences,” the conservative leader said on the sidelines of a meeting marking the start of the political season. He called in particular for “long-term lessons to be learned from extreme situations such as this summer’s heat wave.” Unprecedented drop in the level on the Rhine, poor harvests for winegrowers and grain producers, an increase in forest fires: global warming has left deep traces in recent months in Germany, which is usually less affected than the rest of Europe, AFP notes.
These events have caused “serious damage“ and “clearly show us that we need to resort to concrete action“, the chancellor said. He said the consequences of the heatwaves are affecting many sectors - from healthcare to agriculture.
The opposition Green Party and NGOs have accused Merz's government of inaction. They say that since coming to power in May 2025, the government has prioritized the competitiveness of struggling industry, leaving environmental issues in the background.
Merz was greeted with boos on Saturday in the Hürtgenwald, in the west of the country, where a forest fire burned between 300 and 400 hectares and forced the evacuation of 1,800 people in mid-August.