CDU Leader Friedrich Merz Warns of Critical Economic Challenges and Urges Political Action to Restore Trust

Friedrich Merz, leader of Germany's CDU and Chancellor, has alerted to significant economic difficulties in major sectors and the Mittelstand (small to medium enterprises), highlighting that numerous companies are currently facing job losses despite federal investments. In a letter addressed to coalition parliamentarians, Merz stated that Germany’s economic competitiveness has not improved sufficiently due to high labor costs, energy expenses, and tax burdens. He emphasized that productivity remains inadequate.

Merz expressed confidence that most of these economic issues can be addressed internally, which would also strengthen social cohesion and rebuild public trust in politics. He stressed the importance of correct political and economic decisions to restore confidence.

In the broader political context, Merz referenced the ongoing war in Ukraine, revealing his active diplomatic efforts with Ukrainian, European, and US partners toward a ceasefire. He underlined the need to end the conflict soon but recognized the challenges posed by Russia's limited willingness to negotiate. Merz insisted on the necessity of security guarantees for Ukraine, stating that the resolve of Ukraine’s partners must be clear to Russia.

Parallelly, North Rhine-Westphalia’s Interior Minister Herbert Reul pointed to rising left-wing extremism and shortcomings in disaster preparedness, calling for greater political attention and investment in civil security. Reul criticized decades-long political complacency on crucial security topics while highlighting recent attacks such as the power line sabotage in Berlin, affecting thousands of households and businesses.

Merz’s analysis and appeals represent a critical assessment of Germany’s current economic and political challenges, emphasizing internal reforms and careful international diplomacy as essential to stabilizing both the economy and political trust within society.