Merz: Germany Grapples with Deep Structural Economic Crisis
(MENAFN) Germany is grappling with a severe structural economic crisis rather than a mere temporary downturn, Chancellor Friedrich Merz declared Saturday, conceding that reviving the nation's economy has proven far more challenging than expected.
Addressing members of his Christian Democratic Union in Osnabrueck, Lower Saxony—the home of automotive giant Volkswagen—Merz issued a candid assessment. “I say this also self-critically – this task is bigger than one or the other may have imagined a year ago,” he said.
Highlighting the gravity of the situation, the chancellor stressed, “We’re not just in a period of economic weakness, we are in a structural crisis of our economy.” He warned that many sectors “are no longer truly competitive,” pointing to Volkswagen’s dramatic 36% drop in second-quarter after-tax profits as “one of many messages” signaling economic distress.
Chancellor Merz emphasized, “By this week at the latest, no one should be under any illusions about how deep and far-reaching the challenges that face us are.” He acknowledged, “The quality is still good and company leaders recognize these challenges. But the underlying conditions in Germany simply haven’t been good enough for the last decade.”
Adding to the economic concerns, German automaker BMW reported a steep 29% drop in first-half profits compared to the same period last year.
The decline in Germany’s automotive industry has intensified worries over the stability of the EU’s economic powerhouse. After experiencing a recession last year, the country is now projected to record zero growth this year, according to the International Monetary Fund.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
