Germany's Merz to press cabinet for faster pro-growth reforms
German Chancellor Friedrich Merz is preparing to push his cabinet to accelerate reforms designed to revive economic growth and employment, saying Germany must urgently focus on strengthening its economy.
Merz is expected to make the demand during a cabinet retreat in Neuhardenberg, Brandenburg, where ministers will discuss the government's priorities following the summer break. He has stressed that growth and employment are Germany’s most important economic challenges.
The chancellor wants ministers to move quickly on reforms that were agreed before the summer recess. The measures cover several key areas, including taxes, pensions, deregulation and digitalisation, with the government aiming to reduce the burden on businesses and improve Germany’s competitiveness.
Merz has described the decisions already made by his government as historic and said they must now be implemented as quickly as possible. His message to the cabinet is focused on turning political decisions into practical measures rather than allowing reforms to be delayed by further discussions.
A major goal is to provide rapid and comprehensive relief to the German economy. Merz has specifically highlighted tradespeople and small and medium-sized businesses, which the government sees as important drivers of employment and economic activity.
The planned reforms build on a broader package unveiled earlier this year. That package included tax relief, pension changes, labour-market measures and efforts to cut bureaucracy, with the government arguing that the changes are necessary to restore growth and competitiveness in Europe’s largest economy.
Merz’s latest push comes as his government faces pressure to demonstrate that its economic agenda can deliver tangible results. By urging ministers to move faster, the chancellor is seeking to turn the reform programme into concrete economic relief while putting growth and employment firmly at the center of his government’s agenda.