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Merz vows to rev up German economic 'growth engine'

German Chancellor Friedrich Merz delivered his first major parliamentary speech on May 14, 2025, pledging reforms to revive Europe's largest economy in Berlin.
After two years of economic contraction due to a downturn in manufacturing, soaring energy expenses linked to Russia’s invasion of Ukraine, reduced demand for exports, and longstanding challenges such as an aging workforce, Merz presented bold proposals to rejuvenate the economy.
The new CDU/CSU-SPD coalition agreed on a 150 billion euro investment fund for infrastructure, changes to strict debt rules allowing more borrowing, tax breaks for firms, and gradual corporate tax cuts from 2028.
Merz pledged to make every effort to revive Germany's economic growth and committed to being a strongly pro-European chancellor, while advocating for a strategic reduction of economic dependence on China in response to US tariff pressures.
While some economists welcome Merz's spending plans, doubts remain if his government will achieve deep structural reforms needed to overcome stagnation and prevent threats to Germany’s democracy from rising far-right extremism.

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Tagesschau

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How Merz Wants to Get the German Economy Out of the Crisis

There are many ideas on how the German economy should be revived. Chancellor Merz expects growth of two percent in the medium term. However, many economists are skeptical. By C. Wehrle.

2 days ago·Hamburg, Germany

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Welt

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"Make Economy Great Again": "When this hope bursts, then despair takes hold of itself."

The new government promises economic recovery, Chancellor Merz demands more commitment and more work. But is that enough? Ulf Poschartt praises a recourse to Ludwig Erhard. Daniel Stelter reports about a meeting with entrepreneurs – and why he is so worried about it.

2 days ago·Dortmund, Germany

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Devdiscourse

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Siemens CEO Calls for Responsible Action from German Government

Siemens CEO Calls for Responsible Action from German Government Siemens Chief Executive Roland Busch has expressed optimism regarding the newly formed German government. However, he has urged Chancellor Friedrich Merz to act responsibly amidst the current challenges.Busch emphasized the importance of promoting growth and defending democracy to ensure stability and prosperity. His comments followed Siemens' announcement of its second-quarter earn…

3 days ago·India

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InsideNoVA.com

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Merz vows to rev up German economic 'growth engine'

German Chancellor Friedrich Merz on Wednesday pledged reforms and investment for Europe's biggest economy to transform it once again into a "growth engine" after two years of recession.

3 days ago

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n-tv.de

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Renewing "Wealth for All": Merz wants to make Germany a "growth locomotive"

The gloomy situation of the German economy is one of the priority tasks of the Merz government. The Federal Chancellor wants to initiate reforms in several fields - and to revive an old federal republican promise.

3 days ago

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