The German federal government plans to tackle the country’s economic crisis through reforms in six distinct areas, according to a new annual economic report highlighted in the Thursday edition of the Handelsblatt. Economy Minister Katherina Reiche (CDU) is set to present these proposals on Wednesday afternoon.
The report outlines six “policy action and reform fields” aimed at boosting growth potential:
1. “Reducing bureaucracy” – easing over-regulation and modernising the state.
2. “Infrastructure” – renewing the capital stock and increasing the attractiveness of locations.
3. “Innovation” – creating opportunities for start‑ups and new technologies.
4. “Energy” – cutting system costs while ensuring supply security.
5. “Labor supply” – improving incentive structures and reforming social systems.
6. “External trade” – building resilience through diversification and deeper European integration.
This annual economic report is the central strategic paper of the federal administration, released at the start of each year. Its economic outlook now projects only 1 % growth for 2026, and even the potential growth figure looks poorer.
