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Merz’s First New Year’s Address Centers on Economic Overhaul, Meets Skeptical Press

Analysts now frame 2026 as a proving year that will test whether he can convert stark warnings into policy results.

Overview

  • Chancellor Friedrich Merz delivered his inaugural New Year’s address on January 1, emphasizing the economy and signaling “fundamental reforms.”
  • He outlined a triad of threats that included Russia’s war on Ukraine, a tougher great‑power environment with a changed U.S. posture under President Donald Trump, and demographic strain on pensions.
  • Commentary criticized the speech as business‑oriented and anxiety‑laden, arguing it offered little to households facing job losses, high prices, and ongoing recession worries.
  • Climate policy received scant attention in the address, which drew further reproach from outlets that said citizens’ immediate concerns were sidelined in favor of corporate priorities.
  • Merz warned against “fearmongers,” a line many read as a jab at the AfD, while observers said upcoming state elections and a demanding reform agenda will quickly test his credibility.