Germany’s Merz states country’s economy in structural crisis
(MENAFN) Germany is confronting a “structural crisis” rather than a temporary slowdown, Chancellor Friedrich Merz warned, acknowledging that revitalizing the country’s economy has proven more challenging than expected. Merz made the comments Saturday while addressing members of his Christian Democratic Union in Osnabrueck, Lower Saxony, the home of Volkswagen.
“Large parts of the country’s economy are no longer truly competitive,” Merz said, noting Volkswagen’s 36% drop in second-quarter after-tax earnings as a key indicator. BMW also reported a 29% decline in first-half profits, underscoring widespread struggles in Germany’s automotive sector, a cornerstone of its economy.
Merz emphasized that the challenges are deep and far-reaching, pointing to underlying structural weaknesses that have persisted for over a decade. With Germany recovering from last year’s recession, the IMF now projects zero economic growth for 2025, raising concerns about the future stability of the EU’s largest economy.
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