Overview
- Chancellor Friedrich Merz sent a year‑start letter to coalition MPs warning that the economy is in a critical state and urging measures to improve business conditions.
- He called for reducing labor, energy, bureaucracy and tax burdens, arguing that growth and job creation depend on cutting these costs.
- Merz opened with self‑criticism, acknowledging that Germany’s competitiveness has not improved enough since the coalition took office.
- SPD parliamentary leader Matthias Miersch responded coolly, saying competitiveness hinges on tariff compliance, stable wages and functioning social reforms.
- Miersch said the SPD will set clear social‑policy priorities in the Bundestag, beginning with its caucus meeting this week, as GDP remains stuck at 2019 levels and industry warns of a severe crisis.