Meretz issues a distress call to the business sector in a message to its allies
German Chancellor Friedrich Merz issued a strong warning to members of the ruling coalition, emphasizing that parts of the business sector in Germany are in a 'very critical' situation and need urgent political action by the beginning of 2026.
In a message dated Sunday, details of which were reported by German media on Tuesday, the chancellor painted a bleak picture of the economic situation. He pointed out that large industrial companies, along with a significant number of medium and small enterprises, are facing severe pressures, with job losses already increasing.
This message came after a year of economic recession, marked by widespread layoffs, especially in key industries such as the automotive industry. Bankruptcy rates have reached levels not seen in Germany for many years, increasing concerns about long-term economic stability.
The advisor explained that Germany's productivity is no longer sufficient in light of the changes taking place in the global economy. He pointed out that rising labor and energy costs, along with bureaucratic complexities and heavy tax burdens, pose major obstacles to competitiveness.
Mirts emphasized that the coalition must focus on making decisive political and legal decisions to radically improve economic conditions in 2026. His appeal seems particularly directed at his allies in the Social Democratic Party, after the coalition failed in late 2025 to reach a consensus on essential economic reforms.