German Economy Witnesses Deep "Structural Crisis"
(MENAFN) Chancellor Friedrich Merz has characterized Germany’s current economic difficulties as a profound “structural crisis” rather than a brief phase of “weakness.”
He acknowledged that efforts to restore the nation’s economic health have proven to be more challenging than initially expected.
Speaking on Saturday to members of his Christian Democratic Union (CDU) in Osnabrueck—a key city in Lower Saxony and home to automotive giant Volkswagen—Merz reflected on the daunting scope of the issue.
“I say this also self-critically – this task is bigger than one or the other may have imagined a year ago,” he admitted.
Merz further emphasized that significant portions of Germany’s economic sectors are “no longer truly competitive.”
He cited the dramatic drop in Volkswagen’s net profits, which saw a staggering 36% decline after taxes in the second quarter of the year, labeling it as just “one of many messages” revealing the country’s financial distress.
“No one should be under any illusions about how deep and far-reaching the challenges that face us are,” the chancellor stated, noting the urgency of the situation.
While he commended German firms for maintaining “quality” and showing awareness of the current difficulties, Merz criticized the broader economic environment.
“The underlying conditions in Germany simply haven’t been good enough for the last decade,” he concluded, indicating a need for long-term structural reform.
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