German Chancellor Mertz recently said in a letter to members of the ruling coalition that the German economic situation is “very serious” in some areas, and boosting the economy should be a top priority in 2026. According to German News Agency, Mertz said in the letter that the policies and measures adopted so far have not fully enhanced the competitiveness of German companies. He called on the government to take decisive political and legislative action to effectively improve the business environment and promote economic growth. The German economy contracted for two consecutive years in 2023 and 2024. According to the winter forecast report released by several German economic research institutes in December 2025, the German economy is expected to grow by only 0.1% in 2025 due to factors such as a marked decline in exports to the US.

German Chancellor Mertz recently said in a letter to members of the ruling coalition that the German economic situation is “very serious” in some areas, and boosting the economy should be a top priority in 2026. According to German News Agency, Mertz said in the letter that the policies and measures adopted so far have not fully enhanced the competitiveness of German companies. He called on the government to take decisive political and legislative action to effectively improve the business environment and promote economic growth. The German economy contracted for two consecutive years in 2023 and 2024. According to the winter forecast report released by several German economic research institutes in December 2025, the German economy is expected to grow by only 0.1% in 2025 due to factors such as a marked decline in exports to the US.