BERLIN (Realist English). Chancellor Friedrich Merz on Tuesday called on German business leaders to give his government more time to turn around Europe’s largest but stagnating economy, warning that the impact of recently adopted measures will take longer to materialize.
Speaking at an employers’ congress in Berlin, Merz said restoring sustainable growth remains the top priority of his coalition with the Social Democrats. But Germany’s outlook remains subdued: GDP has barely grown this year, and forecasts show expansion will struggle to exceed 1% in 2026 despite a major borrowing-funded investment push in infrastructure and defense.
“The Federal Republic of Germany is not a speedboat,” Merz said, comparing the economy to “a large tanker with massive engines” that cannot simply pivot “180 degrees in a matter of days.”
Merz is under growing political pressure as the coalition strains over a contentious pension reform. A group of younger conservative lawmakers has threatened to block the bill in parliament, where the government holds only a slim majority. The Social Democrats say they will not renegotiate the reform, which was part of the coalition’s governing program and has already cleared the cabinet.
At the same time, the far-right Alternative for Germany (AfD) is leading in several national polls, eroding confidence in Merz’s centrist alliance.
Merz insisted he would stay focused on economic recovery. “I do not want to leave office and be accused of setting the wrong priorities,” he said. “Reviving growth remains my central goal — nothing and no one will deter me.”
He warned that rising populism would not offer solutions: “Right-wing populism is not the answer. Look at the history books. Too many patterns we have seen before are repeating themselves today.”
